Answer: There is convincing evidence at the the significance level that the DMV's claim is incorrect.
Step-by-step explanation:
Since we have given that
Hypothesis:
[tex]H_0:p=0.6\\\\H_a:p\neq 0.6[/tex]
Probability of teens pass their drivers test on the first attempt = 60% = 0.60
Number of teens = 125
Number of them passed the tests on their first try = 86
[tex]\hat{p}=\dfrac{86}{125}=0.688[/tex]
So, the value of test statistic would be
[tex]z=\dfrac{\hat{p}-p}{\sqrt{\dfrac{p(1-p)}{n}}}\\\\z=\dfrac{0.688-0.60}{\sqrt{\dfrac{0.6\times 0.4}{125}}}\\\\z=\dfrac{0.088}{0.0438}\\\\z=2.009\\\\z\approx 2.01[/tex]
At α = 0.05% level of significance, critical value = 1.645
Since 1.645 < 2.01
So, we will reject the null hypothesis.
Hence, there is convincing evidence at the the significance level that the DMV's claim is incorrect.