Question

A newsletter publisher believes that less than 26%26% of their readers own a Rolls Royce. For marketing purposes, a potential advertiser wants to confirm this claim. After performing a test at the 0.100.10 level of significance, the advertiser failed to reject the null hypothesis. What is the conclusion regarding the publisher's claim?

Answer 1

when the advertiser failed to reject the null hypothesis it means that the belief of the newsletter publisher that ess than 26% of their readers own a Rolls Royce is not supported by statistical evidence at 10% significance level.

Explanation:

given that a newsletter publisher believes that less than 26% of their readers own a Rolls Royce.

For marketing purposes, a potential advertiser wants to confirm this claim.

After performing a test at the 0.10 level of significance, the advertiser failed to reject the null hypothesis.

For this the hypotheses would be

H0: p = 0.26

Ha: p <0.26

when the advertiser failed to reject the null hypothesis it means that the belief of the newsletter publisher that ess than 26% of their readers own a Rolls Royce is not supported by statistical evidence at 10% significance level.