An insurance company offers a discount to homeowners who install smoke detectors in their homes. A company representative claims that 83.0% or more of policyholders have smoke detectors. You draw a random sample of eight policyholders. Let X be the number of policyholders in the sample who have smoke detectors. If you found that one of the eight sample policyholders had a smoke detector, would this be convincing evidence that the claim is false? Explain.
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Let p be the true proportion of policyholders with smoke detectors. - Null hypothesis: H0: p ≥ 0.83 (the company’s claim) - Alternative hypothesis: H1: p < 0.83 Show more…
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