The p-value associated with this test statistic (for our two-tailed test) is: 0.1797.
The p-value serves as an alternative to rejection points to provide the smallest level of significance at which the null hypothesis would be rejected. A smaller p-value means that there is stronger evidence in favor of the alternative hypothesis
The hypotheses are:
H0: p=0.2
Ha: p not equal to 0.2
The sample proportion is 88/500 = 0.176
The test statistic is:
z=(0.176 - 0.2) / sqrt(0.2*0.8/500) = -1.342
And the p-value associated with this test statistic (for our two-tailed test) is: 0.1797.
So we do not reject the null hypothesis. There is no reason to think that the true proportion is not 0.2.
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