Define the parameter under test
p=the player’s free-throw success proportion Let p be the player's free-throw success proportion.
State the null hypothesis
H0:p=0.6 Under the null hypothesis the proportion is unchanged from the stated value.
State the alternative hypothesis
H1:p>0.6 We test whether the proportion has increased.
State the significance level
α=0.05 The test is carried out at the 5% significance level.
Model the test statistic under H_0
X∼B(25,0.6) If H_0 is true, X, the number of throws that were scored, is binomial.
Find the expected number under H_0
E(X)=np=25×0.6=15 This shows where the sample sits relative to expectation.
Describe the critical region for the test
Reject H0 if X≥c The critical region is the set of outcomes that would lead to rejecting H_0.
Test the boundary at c = 19
P(X≥19)=0.07357 Check whether this upper-tail probability is at most alpha.
Test the boundary at c = 20
P(X≥20)=0.02936 Check whether this upper-tail probability is at most alpha.
Identify the critical value
The critical value is the smallest c whose upper-tail probability is at most alpha.
State the critical region
Observations in this region lead to rejecting H_0.
Find the actual significance level
P(X≥20)=0.02936 The actual significance level is the probability of landing in the critical region when H_0 is true.
Check whether the observation lies in the critical region
The observed value lies in the critical region.
State the statistical decision
reject H0 Given the comparison, we reject the null hypothesis.
Comment on the actual significance level
0.02936≤0.05 Because X is discrete the actual significance level is at most the nominal level.