Globokim8

2021-03-08

The homebuilder’s association reports that $75\mathrm{\%}$ of home buyers would like a fireplace in their new home. A local builder finds that 20 out of 30 of his customers wanted a fireplace. Using the p value decision rule determine at the 5% level of significance is there is enough evidence from the sample to conclude that the homebuilders report is too high?

If P is too high in$H}_{0$ then what should it be in $H}_{1$ ?

Also construct a$(1-\alpha )\mathrm{\%}$ interval estimate for the true proportion P.

Make sure to state the meaning of P first…and completely interpret the CI for P.

If P is too high in

Also construct a

Make sure to state the meaning of P first…and completely interpret the CI for P.

joshyoung05M

Skilled2021-03-09Added 97 answers

Step 1

According to the homebuilder's report, the population proportion is

Therefore, the hypothesis are given as:

To test the above claim, standard normal distribution (z-test) will be used. The formula for the same is given by:

The critical z - value at

The p - value which is the probability value for rejecting null hypothesis is 0.1469

According to the p-value approach, null hypothesis is rejected when p-value is less than the

Therefore, there are insufficient evidence to reject null hypothesis, concluding that the homebuilders report is not too high and that the population proportion for home buyers who would like fireplace in their house is

Step 2

The formula for

This implies that we are