The Canadian Automobile Association warns that motorists are being seduced by ads to buy higher octane gas than is useful. Test the claim that fewer than 10% of cars on the road have a design that benefits from higher octane gasoline.
Assume that a hypothesis test of the given claim will be conducted. Use µ for a claim about a mean, p for a claim about a proportion, and σ for a claim about variation.
a. Express the claim in everyday language.
b. Identify the null hypothesis H0.
c. Identify the alternative hypothesis H1.
d. Identify the test as being two-tailed, left-tailed, or right-tailed.
e. Identify the type I error for the test.
f. Identify the type II error for the test.
g. Assuming that the conclusion is to reject the null hypothesis, state the conclusion in
nontechnical terms; be sure to address the original claim.
h. Assuming that the conclusion is failure to reject the null hypothesis, state the conclusion
in nontechnical terms; be sure to address the original claim.