Reference no: EM132474304

You've been assigned to do some hypothesis testing on the color of cars parked in your school parking lots. Your hypothesis testing will be based on using a proportion.  Your think that the proportion of cars parked in your school parking lots are statistically the same as found throughout the world. Your instructions are to review 30 adjacent cars and determine the number of cars that are the color you were assigned.

You have been assigned red color cars. The neighboring school estimates that the word-wide average of blue cars is 8%.  

You counted your cars and found that there were 5 red cars in your sample.

Using a significance level of 5%:

1) Determine the Null and Alternative Hypotheses

2) What is your statistical conclusion?  

3) What is your business decision/conclusion?