Question

An economist claims that the proportion of people who plan to purchase a fully electric vehicle as their next car is greater than 65%. To test this claim, a random sample of 750 people are asked if they plan to purchase a fully electric vehicle as their next car. Of these 750 people, 513 indicate that they do plan to purchase an electric vehicle. The following is the setup for this hypothesis test: H0:p=0.65, Ha:p>0.65. In this example, the p-value was determined to be 0.026. Come to a conclusion and interpret the results for this hypothesis test for a proportion (use a significance level of 5%).

A. Reject the null hypothesis, there is evidence that the proportion is greater than 65%.
B. Fail to reject the null hypothesis, there is not enough evidence to conclude that the proportion is greater than 65%.
C. Reject the null hypothesis, but the p-value is inconclusive.
D. Fail to reject the null hypothesis, and the p-value is significant.

Answer 1

To test the claim that the proportion of people who plan to purchase a fully electric vehicle as their next car is greater than 65%, a hypothesis test was conducted with a significance level of 5%. The p-value obtained from the test was 0.026, leading to the rejection of the null hypothesis and the conclusion that there is evidence to suggest that the proportion is greater than 65%.

Step-by-step explanation:

To test the claim that the proportion of people who plan to purchase a fully electric vehicle as their next car is greater than 65%, a hypothesis test was conducted with a significance level of 5%. The null hypothesis (H0) states that the proportion is equal to 65%, while the alternative hypothesis (Ha) states that the proportion is greater than 65%.

The p-value obtained from the test was determined to be 0.026. Since the p-value is less than the significance level of 0.05, we reject the null hypothesis and conclude that there is evidence to suggest that the proportion of people planning to purchase a fully electric vehicle as their next car is greater than 65%. Therefore, the correct answer is A. Reject the null hypothesis, there is evidence that the proportion is greater than 65%.