Problem

In a study of 823 randomly selected medical malpractice lawsuits, it was found that 510 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. D. Fail to reject the null hypothesis because the P-value is less than or equal to the significance level, $\alpha$. What is the final conclusion? A. There is sufficient evidence to support the claim that most medical malpractice lawsuits are dropped or dismissed. B. There is not sufficient evidence to support the claim that most medical malpractice lawsuits are dropped or dismissed. C. There is sufficient evidence to warrant rejection of the claim that most medical malpractice lawsuits are dropped or dismissed. D. There is not sufficient evidence to warrant rejection of the claim that most medical malpractice lawsuits are dropped or dismissed.

Solution

Step 1 :We are given a sample size of 823 medical malpractice lawsuits, out of which 510 were dropped or dismissed. We are asked to test the claim that most medical malpractice lawsuits are dropped or dismissed at a significance level of 0.05.

Step 2 :We set up our null hypothesis (H0) to be that the proportion of lawsuits dropped or dismissed is equal to 0.5 (i.e., not most), and the alternative hypothesis (H1) is that the proportion is greater than 0.5 (i.e., most).

Step 3 :We use a one-sample proportion z-test to test this hypothesis. The test statistic is calculated as \((p_{hat} - p0) / \sqrt{(p0 * (1 - p0)) / n}\), where \(p_{hat}\) is the sample proportion, \(p0\) is the hypothesized population proportion (0.5 in this case), and \(n\) is the sample size.

Step 4 :Substituting the given values, we get \(p_{hat} = 510 / 823 = 0.6196840826245443\), \(p0 = 0.5\), and \(n = 823\).

Step 5 :Calculating the z-score, we get \(z = (0.6196840826245443 - 0.5) / \sqrt{(0.5 * (1 - 0.5)) / 823} = 6.866988317601134\).

Step 6 :The P-value is then calculated as the probability of observing a test statistic as extreme as, or more extreme than, the observed test statistic under the null hypothesis. The P-value is found to be 3.2785996140205498e-12, which is much smaller than the significance level (0.05).

Step 7 :Since the P-value is less than the significance level, we reject the null hypothesis. This suggests that there is sufficient evidence to support the claim that most medical malpractice lawsuits are dropped or dismissed.

Step 8 :Final Answer: \(\boxed{\text{A. There is sufficient evidence to support the claim that most medical malpractice lawsuits are dropped or dismissed.}}\)

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