Reject this null hypothesis because the p-value (0.0523) is lower than the significance level (0.10) in this case.
Let p represent the fraction of the population.
Taking into account the provided data, we have
Null hypothesis: H0 : p ≤ 0.35.
Alternative hypothesis: H1 : p > 0.35, the test is a right-tailed test since the alternative is right-tailed;
For the stated question-
n = 1000; p' = 0.42.
Test statistics for this sample proportion:
z = (p' - p) / √p(1 - p)/n
Put the values-
z = (0.42' - 0.39) / √0.39(1 - 0.39)/1000
z = 1.94
P-value for this right tailed test is;
P(z > 1.94) = 0.0523
Therefore reject this null hypothesis because the p-value (0.0523) is lower than the significance level (0.10) in this case.
We draw the conclusion that we have enough data to back up the company's claim at the 0.10 level.
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