A simple random sample of size nequals
200
drivers with a valid driver's license is asked if they drive an American-made automobile. Of the 200
drivers surveyed, 118
responded that they drive an American-made automobile. Determine if a majority of those with a valid driver's license drive an American-made automobile at the alpha=0.05
level of significance.
Determine the null and alternative hypotheses.
Null hypothesis (H0): The proportion of drivers with a valid driver's license who drive an American-made automobile is equal to or less than 0.5 (i.e. p ≤ 0.5).
Alternative hypothesis (H1): The proportion of drivers with a valid driver's license who drive an American-made automobile is greater than 0.5 (i.e. p > 0.5).