Question

A newsletter publisher believes that less than 58% of their readers own a Rolls Royce. For marketing purposes, a potential advertiser wants to confirm this claim. After performing a test at the 0.05 level of significance, the advertiser failed to reject the null hypothesis. What is the conclusion regarding the publisher's claim?a) There is sufficient evidence at the 0.05 level of significance that the percentage is less than 58%.b) There is not sufficient evidence at the 0.05 level of significance to say that the percentage is less than 58%.

Answer 1

The conclusion is that there is not sufficient evidence to support the publisher's claim.

Step-by-step explanation:

The conclusion regarding the publisher's claim is b) There is not sufficient evidence at the 0.05 level of significance to say that the percentage is less than 58%.

In hypothesis testing, the null hypothesis is the claim being tested. In this case, the null hypothesis is that less than 58% of the readers own a Rolls Royce. The alternative hypothesis would be that more than 58% of the readers own a Rolls Royce.

Since the advertiser failed to reject the null hypothesis at the 0.05 level of significance, it means that there is not enough evidence to support the claim that less than 58% of the readers own a Rolls Royce.