When testing gas pumps for accuracy, fuel-quality enforcement specialists tested

Question

When testing gas pumps for accuracy, fuel-quality enforcement specialists tested pumps and found that 1325 of them were not pumping accurately (within 3.3 oz when 5 gal is pumped), and 5644 pumps were accurate. Use a 0.01 significance level to test the claim of an industry representative that less than 20% of the pumps are inaccurate. Use the P-value method and use the normal distribution as an approximation to the binomial distribution. Identify the null hypothesis and alternative hypothesis. O A. Ho p 0.2 H1: p -0.2 O C. Ho p 0.2 O D. Ho p 0.2 H1: p 02 H1: 0.2 O E. Ho p -0.2 O F. Ho p 0.2 H1 p 0.2 H1 p

Explanation / Answer

here option F is correct

total number of sample size n=1325+5644=6969

hence std error =(p(1-p)/n)1/2 where p=0.2

=0.0048

also phat=1325/6969 =0.19

hence test stat z=(phat-p)/std error =(0.19-0.20)/0.0048 =-2.0604

for above p value =0.0197

because p value is greater then significance level, we fail to reject

there is insufficient evidence....

option A is correct

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