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Sonbull [250]
3 years ago
15

A local car dealer claims that 25% of all cars in San Francisco are blue. You take a random sample of 600 cars in San Francisco

and find that 141 are blue. Conduct a hypothesis test to see if you can reject the dealer's claim with a significance level of 0.05. Include all ten steps of the hypothesis testing process. Write your answer on a piece of paper and upload a photo or scan, or else type your answer into a electronic document and upload that document. In order to get full credit you must
Mathematics
1 answer:
sammy [17]3 years ago
4 0

Answer:

No, we can't reject the dealer's claim with a significance level of 0.05.

Step-by-step explanation:

We are given that a local car dealer claims that 25% of all cars in San Francisco are blue.

You take a random sample of 600 cars in San Francisco and find that 141 are blue.

<u><em>Let p = proportion of all cars in San Francisco who are blue</em></u>

SO, Null Hypothesis, H_0 : p = 25%   {means that 25% of all cars in San Francisco are blue}

Alternate Hypothesis, H_A : p \neq 25%   {means that % of all cars in San Francisco who are blue is different from 25%}

The test statistics that will be used here is <u>One-sample z proportion</u> <u>statistics</u>;

                                  T.S.  = \frac{\hat p-p}{{\sqrt{\frac{\hat p(1-\hat p)}{n} } } } }  ~ N(0,1)

where, \hat p = sample proportion of 600 cars in San Francisco who are blue =   \frac{141}{600} = 0.235

            n = sample of cars = 600

So, <u><em>test statistics</em></u>  =  \frac{0.235-0.25}{{\sqrt{\frac{0.235(1-0.235)}{600} } } } }

                               =  -0.866

<em>Now at 0.05 significance level, the z table gives critical values of -1.96 and 1.96 for two-tailed test. Since our test statistics lies within the range of critical values of z so we have insufficient evidence to reject our null hypothesis as it will not fall in the rejection region due to which we fail to reject our null hypothesis.</em>

Therefore, we conclude that 25% of all cars in San Francisco are blue which means the dealer's claim was correct.

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