Question
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In a study of 803 randomly selected medical malpractice lawsuits, it was found that 495 of them were dropped or dismissed Use a 005 significance level to test the claim that most medical malpractice lawsuits are dropped or dismissed.
Which of the following is the hypothesis test to be conducted?
A.
C.
E.
B.
D.
F.
What is the test statistic?
(Round to two decimal places as needed.)

Ask by Parsons Carlson. in the United States
Mar 21,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

Hypothesis Test:
  • Null Hypothesis ( ):
  • Alternative Hypothesis ( ):
Test Statistic:

Solution

Step 1. Formulate the hypotheses
The claim is that most (i.e., more than 50%) medical malpractice lawsuits are dropped or dismissed. We define as the proportion of lawsuits that are dropped or dismissed. The hypotheses are then:
Thus, we select the hypothesis given in option F.
Step 2. Calculate the sample proportion
The sample size is and the number of dropped/dismissed cases is 495, so the sample proportion is:
Step 3. Determine the test statistic
The test statistic for a one-proportion -test is calculated using:
Here, . Substitute the values:
Step 4. Compute the denominator
Calculate the standard error:
Step 5. Compute the -value
Final Answer
  • The correct hypothesis test is:
    (Option F)
  • The test statistic is:

Answered by UpStudy AI and reviewed by a Professional Tutor

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Bonus Knowledge

To test the claim that most medical malpractice lawsuits are dropped or dismissed, we need to establish the hypotheses first. Since you are looking to determine if the proportion of lawsuits that are dropped or dismissed is greater than 0.5, the correct hypotheses would be:
(the null hypothesis that says the proportion of dropped lawsuits is equal to 0.5)
(the alternative hypothesis that says the proportion is greater than 0.5)
Now, for finding the test statistic , we can use the formula for the z-test for proportions:
Where:
  • = observed proportion =
  • = hypothesized proportion = 0.5
  • = sample size = 803
Calculating :
Plugging in the numbers:
So the test statistic, rounded to two decimal places, is:

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