A newspaper publisher believes that 58% of their readership owns a rolls Royce. A random sample of 190 found that 50% of the readers owned a rolls Royce. Use a 0.05 level of significance state the hypotheses H0 and H a

p =0.5

Standard error of pbar = sqrt(0.5*0.5/190) = 0.036274

z = (0.58-0.5)/0.036274 = 2.20545 = 2.2 > 1.96 ( 5% value 2 tailed)

Since z is greater than 1.96 we reject the null hypothesis and conclude that true proportion is not 0.5

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