A company claims that their motor oil additive willdecrease the proportion of en

Question

A company claims that their motor oil additive willdecrease the proportion of engine failuress by more than 25%. Theylook for evidence that this claim is true by conducting ahypothesis test and get a P-value of .1814. Which of the followingconclusions is correct, based on this hypothesis test. A) We fail to reject the null hypothesis and conclude thatthere is insufficient evidence to support the company'sclaim. B) There is an 18.14% chance that the additive decreasesengine failures by more than 25% so we reject the nullhypothesis. C) We fail to reject the null hypothesis and conclude that theadditive DOES decrease engine failures by more than 25%. D) We reject the null hypothesis and conclude that theadditive DOES decrease engine failures by more than 25%. E) 5% of the time we will get a significant result just byluck so since 18.14% is a greater than 5% we reject the nullhypothesis. A company claims that their motor oil additive willdecrease the proportion of engine failuress by more than 25%. Theylook for evidence that this claim is true by conducting ahypothesis test and get a P-value of .1814. Which of the followingconclusions is correct, based on this hypothesis test. A) We fail to reject the null hypothesis and conclude thatthere is insufficient evidence to support the company'sclaim. B) There is an 18.14% chance that the additive decreasesengine failures by more than 25% so we reject the nullhypothesis. C) We fail to reject the null hypothesis and conclude that theadditive DOES decrease engine failures by more than 25%. D) We reject the null hypothesis and conclude that theadditive DOES decrease engine failures by more than 25%. E) 5% of the time we will get a significant result just byluck so since 18.14% is a greater than 5% we reject the nullhypothesis.

Explanation / Answer

Answer: A

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