In a study of 802 randomly selected medical malpractice lawsuits, it was found that 488 of them were dropped or dismissed. Use a 0.05 significance level to test the claim that most medical malpractice lawsuits are dropped or dismissed.

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1 July, 15:19

In a study of 802 randomly selected medical malpractice lawsuits, it was found that 488 of them were dropped or dismissed. Use a 0.05 significance level to test the claim that most medical malpractice lawsuits are dropped or dismissed.

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Samuel Hanna · Answer 1

Most medical malpractice lawsuits are dropped or dismissed.

Step-by-step explanation:

Null hypothesis: The proportion of medical malpractice lawsuits that are dropped or dismissed is 0.61

Alternate hypothesis: The proportion of medical malpractice lawsuits that are dropped or dismissed is greater than 0.61

The test is a one-tailed test because the alternate hypothesis is expressed using greater than

Test statistic (z) = p : sqrt[p (1-p) : n]

p is sample proportion = 488/802 = 0.61

n is the number of medical malpractice lawsuits selected = 802

z = 0.61 : sqrt[0.61 (1-0.61) : 802] = 0.61 : 0.017 = 35.88

The critical value for a one-tailed test using 0.05 significance level is 1.645

Conclusion:

Reject the null hypothesis because the test statistic 35.88 is outside the region bounded by the critical value 1.645.

The claim is contained in the alternate hypothesis, so there is sufficient evidence to support the claim that most medical malpractice lawsuits are dropped or dismissed.