The Faculty of Business proposed to the university to changing the delivery of a large number of courses from conventional to e-learning form. A number of students raised their
concerns about that change. The University will reject the proposal if it thinks that more than 15% (i.e. 0.15) of the students will not be happy with this change and proposed a pilot test to measure the effect of this change to students. Out of 200 students who attended classes on-line, 40 of them expressed their absolute dissatisfaction.
i. Define the parameter of interest, giving appropriate notation and writing a sentence saying what it is.
ii. Specify the null and alternative hypotheses: Use notation, not words.
iii. Compute the test statistic.
iv. Find the P-value of the test
v. Decide whether the result is statistically significant (i.e. make a conclusion about the hypotheses). use α = 0.05:
vi. Report the conclusion in context:
vii. How many students should be asked if the University wishes to limit the sampling error to less than 1% (one percentage point) and increase their level of confidence to 99%.