A business is looking to buy new cars The dealer states that

A business is looking to buy new cars, The dealer states that their cars have an average of greater than 95 percent customer satisfaction. The business decides to check this and hires a company to survey 70 owners of the same type of cars. They will test the dealers figures at the a=.05 level What would be the appropriate null and alternative hypothesis and what would be the critical value?

Solution

Null hypothesis the cars have an average of 95 percent customer satisfaction.

Alternate hypothesis : the cars have an average of more than 95% customer satisfaction.

level of significance = 0.05

critical value = 1.645