In a study of 1228 randomly selected medical malpractice lawsuits, it was found that 856 of them were dropped or dismissed. Use a 0.01 significance level to test the claim that most medical malpractice lawsuits are dropped or dismissed.

Hypothesis

H o : No difference between proportions

H 1 : There is a significant difference between proportions

n = 1228

b = 1228 - 856

b = 375

Since n ≥ 25

b = { (a + 0.5) - n/2 } / (√n) / 2

= { (372 + 0.5) - 1228/2 } / (√1228) / 2

= - 13.789

from table : A-2 p-value is 0.000 given significance level is α = 0.01 p-value is less than significance level hence there is enough evidence to reject null hypothesis Which means there is a significance difference between the proportion of lawsuits that go to trail which should be dismissed