Answer:
Yes, we have reason to believe that fewer than one-fifth are heated by oil.
Step-by-step explanation:
A one-sample proportion test is to be performed to determine whether fewer than one-fifth of the homes in a certain city are heated by oil.
The hypothesis can be defined as follows:
H₀: The proportion of homes in a certain city that are heated by oil is not less than one-fifth, i.e. p ≥ 0.20.
Hₐ: The proportion of homes in a certain city that are heated by oil is less than one-fifth, i.e. p < 0.20.
The information provided is:
n = 1000
x = 136
α = 0.05
Compute the sample proportion as follows:
[tex]\hat p=\frac{x}{n}=\frac{136}{1000}=0.136[/tex]
Compute the test statistic as follows:
[tex]z=\frac{\hat p-p}{\sqrt{\frac{p(1-p)}{n}}}[/tex]
[tex]=\frac{0.136-0.20}{\sqrt{\frac{0.136(1-0.136)}{1000}}}\\\\=-5.9041\\\\\approx -5.90[/tex]
The test statistic value is, -5.90.
Decision rule:
Reject the null hypothesis if the p-value of the test is less than the significance level.
Compute the p-value as follows:
[tex]p-value=P(Z<-5.90)\\\\=1-P(Z<5.90)\\\\=1-(\approx 1)\\\\=0[/tex]
The p-value of the test is, 0.
p-value = 0 < α = 0.05
The null hypothesis will be rejected at 5% level of significance.
Conclusion:
The proportion of homes in a certain city that are heated by oil is less than one-fifth.