Answer:
The decision is to fail to reject the Null Hypothesis. The conclusion is that there is not enough evidence to support the claim.
Step-by-step explanation:
A one-proportion <em>z</em>-test can be used to determine whether the proportion of cars with manual transmission is less than 10%.
The hypothesis is defined as:
<em>H₀</em>: The proportion of cars with manual transmission is 10%, i.e. <em>p</em> = 0.10.
<em>Hₐ</em>: The proportion of cars with manual transmission is less than 10%, i.e. <em>p</em> < 0.10.
The information provided is:
The test statistic is:
Decision rule:
If the <em>p</em>-value of the test is less than the significance level (<em>α</em>) then the null hypothesis will be rejected or else accepted.
The <em>p</em>-value = 0.299 > <em>α</em> = 0.05.
The null hypothesis was failed to rejected at 5% level of significance.
Conclusion:
As the null hypothesis was not rejected it can be concluded that the proportion of cars with manual transmission is 10%.
Thus, the correct option is:
"The decision is to fail to reject the Null Hypothesis. The conclusion is that there is not enough evidence to support the claim."