Unhappy HMO patients. How likely are patients who file complaints with a health maintenance organization (HMO) to leave the HMO? In one year, 639 members of a large New England HMO filed complaints. Fifty-four of the complainers left the HMO voluntarily. Consider this year's complainers as an SRS of all patients who will complain in the future. We will investigate if the population proportion will be less than 7% with a hypothesis test.
a. State the null and alternative hypotheses for the question above (if the population proportion $p$ is less than 0.07). Is this a left-tailed, right-tailed, or two-tailed test?
b. Find the test statistic. (Hint: you will need to find the sample proportion first).
c. Using your test statistic in part b, find the $p$-value with the =NORM.DIST() Excel function.
d. Based on your $p$-value in part c, can you conclude that the population proportion is less than 7%? Use $\alpha = 0.10$.