The probability computed shows that there ia enough evidence to support the director's claim.
From the information given, the hospital director is told that 79% of the emergency room visitors are insured.
p = 0.79
q = 1 - 0.79 = 0.21
The computation of the z value is -1.91. This is a two tailed test.
The p-value will be:
= P(Z < -1.91)
= 0.0562 under the distribution table.
In this case, the p value is less than 0.10, therefore, we reject the null hypothesis.
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