A local bakery claim that 70% of its neighborhood likes its products. To verify this claim, I would collect the data by randomly selecting the group of customers who buys bakery products from my local bakery and the other group of customers who purchase products from other bakeries. The population is considered all the consumers who consume products from the bakery. The parameter is the customers who like the products of the bakery. The null hypothesis shows that the percentage of consumers who like the products is less than or equal to 0.70. The alternative Hypothesis shows that the rate of consumers who likes bakery products is more significant than 0.70. I will use the z test to test the Hypothesis.

Questions:

1. What are the five-step processes that we need to carry out to complete the test?

2. Formula of Z test and example calculation