Question

A newsletter publisher believes that 64d% of their readers own a Rolls Royce. A testing firm believes this is inaccurate and performs a test to dispute the publisher's claim. After performing a test at the 0.020.02 level of significance, the testing firm decides to reject the null hypothesis. What is the conclusion regarding the publisher's claim

Answer 1

Explanation:

The null hypothesis

`H_o:p=0.64`

The alternative hypothesis

`H_1:p \\eq 0.64`

At 0.02 level of significance,

the testing firm rejects the null hypothesis.

This implies that the rejection of the null hypothesis shows that there is sufficient evidence to reject a newsletter publisher who believes that 64% of their readers own a Rolls Royce.