In a study of 799 randomly selected medical malpractice​ lawsuits, it was found that 499 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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Answer:

Claim is true that most medical malpractice lawsuits are dropped or dismissed.

Step-by-step explanation:

Given :In a study of 799 randomly selected medical malpractice​ lawsuits, it was found that 499 of them were dropped or dismissed.

To Find : Use a 0.05 significance level to test the claim that most medical malpractice lawsuits are dropped or dismissed.

Solution:

n =  799

x = 499

We will use one sample proportion test  

[tex]\widehat{p}=\frac{x}{n}\\\widehat{p}=\frac{499 }{ 799}\\\widehat{p}=0.6245[/tex]

We are given that the claim is most medical malpractice lawsuits are dropped or dismissed.

Probability of dropped or dismissed is 1/2

 [tex]H_0:p=0.5\\H_a:p>0.5[/tex]

Formula of test statistic = [tex]\frac{\widehat{p}-p}{\sqrt{\frac{p(1-p)}{n}}}[/tex]

                                        =[tex]\frac{0.6245-0.5}{\sqrt{\frac{0.5(1-0.5)}{799}}}[/tex]

                                       = 7.038

p value (z>7.038) is 0

α =0.05

So, p value < α

So, we reject the null hypothesis

So,claim is true

Hence most medical malpractice lawsuits are dropped or dismissed.

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