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We are pricing an insurance policy, and are interested in the proportion of workplace accidents in which alcohol is deemed to be a contributing factor.
We are pricing an insurance policy, and are interested in the proportion of workplace accidents in which alcohol is deemed to be a contributing factor. Specifically, we would like to test the null hypothesis that alcohol is a factor in at most 19% of accidents, against the alternative hypothesis that this fraction is greater that 19%. In a random sample of 50 recent workplace accidents, it was found that alcohol played a part in 16 of them. Among the following five significance levels, what is the smallest significance level at which you can reject the null hypothesis? O 0.2% O 1% O 2.5% O 5% O 10%
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