Out of 899 home-based businesses, 369 were owned by women
H0 : π = 0.5
HA : π < 0.5
Use this diagram to give an example of the use of a normal approximation to obtain a p-value. A simulation is used first to find an approximate p-value before the normal approximation is used.
Click Accumulate then simulate sampling of 899 businesses about 300 times. (Hold down the button Simulate.)
Mention that using the binomial distribution would find the exact p-value but would involve summing a very large number of binomial probabilities.
Select Bar chart from the pop-up menu, then select Normal approximation to find the approximate p-value without a simulation.
Since the probability of 369 or fewer businesses owned by women is virtually zero, it is almost certain that less than half of all home-based businesses are owned by women.
A recent study that was reported in the Wall Street Journal sampled 899 home-based businesses and found that 369 were owned by women.
Are home-based businesses less likely to be owned by females than by males?