Question

A hypothesis test was used to see if less than 5% of all Americans would still drive to work if gas prices went above $10.00 a gallon. The P-value for this test was 0.03. We can conclude that only 3% of all Americans would still drive to work if gas prices went above $5.00.True / False.

Answer 1

The correct option is;

False

Explanation:

Here, we note that the proportion of the test statistic which is used in the test is 5% and the P-value for the test is 0.03

The hypothesis test is meant to check if people will still drive to work when the gas prices are above $10.00 and the suggestion was that we can conclude that when the fuel price is above $5.00 everyone would still drive to work without a P-value for the test, hence we can not come to the stated conclusion.