Answer:
Given:
Sample size, n = 6965
Sample proportion p' =
Let's claim that the return rate is less than 20%, ie, P = 0.2
Significance level = 0.01
The null and alternative hypotheses:
H0 : P = 0.2
H1 : P < 0.2
Option A is correct
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For the test statistic, Z, let's use the formula:
![Z = \frac{p'- P}{\sqrt{(P(1-P))/(n)}}](https://img.qammunity.org/2021/formulas/mathematics/high-school/k8mcslz5gs2e2h2dfrgjxal4ve0phj7788.png)
![= \frac{0.19 - 0.2}{\sqrt{(0.2(1 - 0.2))/(6965)}} = -1.887](https://img.qammunity.org/2021/formulas/mathematics/high-school/h5s7f45t205wk5f7to3asrm32pqmxntylx.png)
Z = -1.887 ≈ -1.89
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The p-value.
This is a left tailed test.
Using z table,
P-value = P(Z ≤ -1.89) = 0.029
The pvalue is 0.029
Decision:
Because the pvalue, 0.029 is greater than level of significance, 0.01, we fail to reject null hypothesis, H0.
Conclusion:
There is not enough sufficient evidence to conclude that the return rate is less than 20%