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Largest count of fans that rejects a 20 percent claim

Question

Alice says 20%20\% of people love Spotify; Bob suspects the true share is lower. He surveys 100100 random people and runs a one-sided large-sample z-test at α=0.05\alpha=0.05 (critical value −1.645-1.645). What is the largest number of Spotify lovers in his sample that still lets him reject Alice's claim?

Short answer

1313. Under H0H_0 the sample proportion has standard error 0.2⋅0.8/100=0.04\sqrt{0.2\cdot0.8/100}=0.04. Rejection needs p^<0.2−1.645×0.04=0.1342\hat p<0.2-1.645\times0.04=0.1342, i.e. at most 1313 people out of 100100.

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