Pls help me to do the following
Q)Carryout the following test using the binomial distribution where random variable X represents the number of successes.
H0: p = 0.50; H1: p ¹ 0.05; n = 20, x = 7 and using a 10% level of significance.
You calculate the probability using the binomial distribution:
where is the probability of exactly success in trials with probability of success on a single trial for the binomial distribution.
I figured it in the following way. Pls say whether this is alright.
Test static X has the binomial distribution which can be written as
This seems to be a two tailed test and since the value
of p given for H0 is 0.5, then the distribution of the test static X will be symmetrical.
From the table of binomial distribution
So the probability for the two tailed test will be = 0.1316*2=0.2632
Hence we cannot reject H0 for the significance level of 10%.
Is this argument correct? Pls comment.