Question

A newsletter publisher believes that 21 % 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 0.10 level of significance, the testing firm decides to reject the null hypothesis. What is the conclusion regarding the publisher's claim? There is sufficient evidence at the 0.10 level of significance that the percentage is not 21 %. There is not sufficient evidence at the 0.10 level of significance that the percentage is not 21 % .

Answer 1

There is sufficient evidence at the 0.10 level of significance that the percentage is not 21 %.

Explanation:

In this question we are told that A newsletter publisher believes that 21 % of their readers own a Rolls Royce. A testing firm believes this is inaccurate and performs a test to dispute the publisher's claim.

Thus;

Null hypothesis; H0: μ = 21%

Alternative hypothesis; Ha: μ ≠ 21%

Usually in hypothesis testing, we reject the null hypothesis when the p-value is less than the significance level.

Now, we are told that after performing a test at the 0.10 level of significance, the testing firm decides to reject the null hypothesis.

Thus, we can conclude that There is sufficient evidence at the 0.10 level of significance that the percentage is not 21 %.

So we can conclude that