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A. A gas company claims that two thirds of the houses in certain large city are heated by natural gas. A random sample of 1000 houses in this city found 625 are heated by natural gas. Test the gas company's claim at the 5% significance level.

  1. hypotheses
  2. check conditions
  3. decision rule
  4. computation
  5. conclusion

B. Is this hypothesis test a right-tailed , left-tailed, or two-tailed test? Explain why you chose that kind of test in this situation.

C. Explain carefully what the P-value represents in context.

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