Question

In 2000, the percentage of adults in a certain town who drove an SUV was 53%. In 2005, in a random sample of 100 people from this town, 45 said that they drive an SUV. At the 10% level of significance, use the critical-value method to determine if the percentage of adults in this town who drive an SUV has changed from the 2000 percentage. Correctly state a) your conclusion about what to do with H0 AND b) your conclusion about the claim that is being made.

Answer 1

This question can be solved by the method of normal distribution . We need to develop the null and alternative hypothesis. After checking we can derive a conclusion about the hypothesis and its result in following ways.

Since we are accepting our null hypothesis,

a.). We are accepting the null hypothesis because it lies in the confidence interval.

b.). We conclude from the above results that the mean of drivers driving SUV in year 2000 is same as year 2005. They do not differ from the mean values. We reject the claim that the number of people driving SUV differ in these two years.