Joshua C. answered 06/14/22
Engineer and Business Graduate with Extensive Statistics Experience
Practical Significance: We expect 25% of 736 (184) to be yellow. We observe that 192 are. Practically speaking, this is not a significant difference.
Statistical Significance:
Let the null hypothesis Ho be the following: p = 0.25 (proportion of yellow peas is 25%).
And the alternate hypothesis Ha: p=/= 0.25 (proportion is not 25%)
Note that this is a two tailed test because we are testing if it is not equal to something, a one-tailed test is for greater than or less than.
Recall the formula for a Z-Score: z = (po - p)/√(p*(1-p))/n) = (0.26-0.25)/√((0.25*0.75)/736) = .01/0.01596 = 0.627
Using a Z-Score table or a calculator in Excel, we see p = 0.53 so this is not statistically significant. For it to be significant at the 0.05 level (95% confidence), we would need a p-value less than 0.05.