A Survey or 1905 people who took trips revealed that 132 of them included a visi

Question

A Survey or 1905 people who took trips revealed that 132 of them included a visit to a theme park Based on those survey results, a management consultant claims that less than 8 % of trips include a theme park visit. Test this claim using the a = 0.01 significance level. the test statistic is the critical value is the conclusion is There is sufficient evidence to support the claim that less than 8 % of trips include a theme park visit There is not sufficient evidence to support the claim that less than 8 % of trips include a theme park visit.

Explanation / Answer

pcap = 132/1905 = .069
p = .08

Ho: p<.08
Ha: p>=.08

Test statistic is Z = (.069-.08)/sqrt(.08*.92/1905) = -1.77
The critical value at .01 sgnificance level is -2.575

Conclusion is :

We will not reject Ho since test statistic is not in critical region
Hence, B is right choice

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