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Question

Find the PP-value obtained when testing the claim that p=0.75p=0.75 when given sample data resulting in a test statistic of z=1.20z=1.20.

Solution

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The test is two-tailed, then the P-value is the probability of finding a value equal to the z-score or more extreme:

P(Z<1.20 or Z>1.20)=2×P(Z<1.20)=2×0.1151=0.2302P(Z<-1.20\text{ or }Z>1.20)=2\times P(Z<-1.20)=2\times 0.1151=0.2302

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