A researcher claims the proportion of auto accidents that involve teenage drivers is less than 20%. ABC Insurance Company checks police records on 200 randomly selected auto accidents and notes that teenagers were at the wheel in 32 of them.
Assume the company wants to use a 0.05 significance level to test the researcher's claim.
- Identify the null hypothesis and the alternative hypothesis.
- Determine the test statistic. Show all work; writing the correct test statistic, without supporting work, will receive no credit.
- Determine the P-value for this test. Show all work; writing the correct P-value, without supporting work, will receive no credit.
- Is there sufficient evidence to support the researcher's claim that the proportion of auto accidents that involve teenage drivers is less than 20%? Explain.