Question

A newsletter publisher believes that over 38% of their readers own a Rolls Royce. For marketing purposes, a potential advertiser wants to confirm this claim. After performing a test at the 0.05 level of significance, the advertiser decides to reject the null hypothesis. What is the conclusion regarding the publisher's claim? A. There is sufficient evidence at the .05 level that the percentage is over 38% B. We cannot tell since we are not given the sample size C. There is not sufficient evidence at the .05 level that the percentage is over 38%

Answer 1

Publisher believe that over 38% of their readers own rolls Royce .

So hypothesis are

H_{​​​​​​0} : P = 0.38. Vs H_{​​​​​​1 :} P > 0.38

Here we reject the null hypothesis.

From sample there is sufficient evidence at 0.05 level of significance that percentage is over 38%

Hence option (A) is the correct choice.