I am trying to work out this problem, I am not exactly sure how togo about it...

Question

I am trying to work out this problem, I am not exactly sure how togo about it...I am not sure which formula to use.....

A bank says that they are quick to give a response to loanapplications, saying that at most 1/5 of all loan
applications require more than three days to be processed after theapplication is received. If a random sample of 450 customersreveals that 105 loan applications required more than three workdays for
processing, is the advertisement supported, at a confidence levelof 95?     

Explanation / Answer

Given p=1/5=0.2, phat=105/450 = 0.23, n=450 =0.05, Z(0.05)=1.645 (check normal table) The test hypothesis is Ho:p>=0.2 Ha:p

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