Test Hypotheses About a Population Proportion
-According to a Local $5.9 \%$

question 148

Short Answer

Test Hypotheses about a Population Proportion
-According to a local chamber of commerce, in 1993, $5.9 \%$ of local area residents owned more than five cars. A local car dealer claims that the percentage has increased. He randomly selects 180 local area residents and finds that 12 of them own more than five cars. Test this car dealer's claim at the $\alpha = 0.05$ level of significance.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or business activity.

Cost Center

A department or unit within an organization to which costs can be allocated, but that does not directly generate revenue.

Performance Evaluation

The systematic process of assessing and reviewing an employee’s job performance and productivity in relation to established criteria and objectives.

Excess Capacity

The situation in which a company can produce more goods or services than currently demanded due to available resources exceeding production requirements.