Question

A newsletter publisher believes that less than 25% of their readers own a Rolls Royce. For marketing purposes, a potential advertiser wants to confirm this claim. After performing a test at the 0.05 level of significance, the advertiser decides to reject the null hypothesis. What is the conclusion regarding the publisher's claim

Answer 1

There is enough evidence at the 0.05 significance level that the percentage is less than 25%.

Explanation:

The question has no options. However, there are enough details to arrive at a conclusion.

Required

What can we conclude about the claim of the publisher.

From the question, we understand that the null hypothesis is rejected.

In statistics, a hypothesis is rejected, if the level of significance is less than the required or determined value.

In this case, the determined value 25% and the level of significance is 0.05

So, the conclusion on the claim is that there is enough evidence at the 0.05 significance level that the percentage is less than 25%.