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A tire manufacturer has a 60,000 mile warranty for tread life. The manufacturer considers the overall tire quality to be acceptable if less than 5%

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A tire manufacturer has a 60,000 mile warranty for tread life. The manufacturer considers the overall tire quality to be acceptable if less than 5% are worn out at 60,000 miles. The manufacturer tests 250 tires that have been used for 60,000 miles. They find that 9 of them are worn out. With this data, we test the following hypotheses at the 5% significance level. The P-value is 0.15. Ho: The proportion of tires that are worn out after 60,000 miles is equal to 0.05. Ha: The proportion of tires that are worn out after 60,000 miles is less than 0.05. Which of the following conclusions is correct? Accept Ho Fail to reject Ho Reject Ho

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