Question
The Ministry of Road Transport and Highways (MRTH) is concerned about over-weight trucks damaging highways. MRTH maintains that no more than 10% of trucks on
The Ministry of Road Transport and Highways (MRTH) is concerned about over-weight trucks damaging highways. MRTH maintains that no more than 10% of trucks on the roads are over-weight and has publically indicated that the percentage is less. As a precaution, MRTH plans to weigh a sample of trucks operating on major routes. Unless the data reject its beliefs, MRTH will continue normal enforcement operations. If the data reject its beliefs, MRTH will institute reforms. Let p denote the proportion of overweight trucks operating on roads.
Suppose MRTH decides to test H0 : p 0.10 using = 0.025 with n = 400. Assume the necessary conditions have been satisfied. MRTH will reject H0 if p is greater than about
(A) 0.125 (B) 0.105 (C) 0.145 (D) 0.13 (E) None of the above
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