Ho: P≥0.7
Ha: P<0.7
Rejection Region at ∝=0.05 is Z<-1.645
It's a one sided test. There is only one rejection region. In this case we would fail to reject Ho. There is not convicing evidence that the proprotion of insomniacs that had sleep induced by this dosage is less than 0.7.
Let me know if you have any more questions.