It is claimed that at most $70 \%$ of all local businesses last more than one year. The null hypothesis $p=0.70$ is tested against the alternative $p0.70$ at $\alpha=0.05$ for a sample size of $n=11$. Suppose eight of the businesses lasted more than one year. Which of the following decisions should be made regarding the null hypothesis?
A) Reject, since $118$.
B) Do not reject, since $118$.
C) Reject, since $84$.
D) Do not reject, since $84$.

Question

It is claimed that at most $70 \%$ of all local businesses last more than one year. The null hypothesis $p=0.70$ is tested against the alternative $p>0.70$ at $\alpha=0.05$ for a sample size of $n=11$. Suppose eight of the businesses lasted more than one year. Which of the following decisions should be made regarding the null hypothesis?
A) Reject, since $11>8$.
B) Do not reject, since $11>8$.
C) Reject, since $8>4$.
D) Do not reject, since $8>4$.

Quizplus · Accepted Answer

The Answer is B

It Is Claimed That at Most 70%70 \%70% Of All Local Businesses Last More Than One Year

It Is Claimed That at Most $70 \%$ Of All Local Businesses Last More Than One Year