Curing Diabetes: Vertical banded gastroplasty is a surgical procedure that reduces the volume of stomach in order to produce weight loss. In a recent study, 82 patients with Type 2 diabetes underwent this procedure and 59 of them experienced recovery from diabetes. Does this study provide convincing evidence that more than 60% of those with diabetes who undergo this surgery will recover from diabetes? (Source: New England Journal of Medicine 357: 753-761). Use 5% significance level.
Perform a hypothesis test using the 5-step process:
a) State Ho and H1 in symbols and in words in the context of the problem. Then identify which hypothesis is the claim, and determine the type of test (right-tail, left-tail, two-tail).
b) Determine the critical value and label it -- for example z = 1.96 or t = 2.412, etc.
c) Compute the test value. If you are using the p-value method, then include the p-value of the test.
d) Make the decision to Reject Ho or DO not reject Ho.
e) State your complete conclusion in the context of the claim.