Hello, I'm a bit confused about when to include the continuity correction factor when carrying out a hypothesis test on the proportion of a population. For example, in the September 2006 Question 5 I would've thought that the solution should read : (0.34 + 0.5/200 -0.4) on the numerator of the test statistic? Obviously the effect of including this would be minimal but if the sample size was smaller should the continuity correction factor be included? Thanks in advance!!
68 females out of 200 so should be: \(\frac{\frac{68+0.5}{200} - 0.4}{\sqrt{0.24}}\) So I agree with you....not sure whose solutions you are looking at...
Hi John thanks for the reply and for clearing that up. The Institute's solution only has 68/200 when calculating it using the proportions but does include the continuity correction when working in numbers of policyholders.
