#
Question

The Spark Freq research center claims that at least 50% of people believe that drivers should be allowed to use cellular-phones with hands-free devices while driving. In a random sample of 150 US adults, 58% say that drivers should be able to use cellular phones with hands-free devices. Does the sample data provide evidence to conclude that the percentage of people who believe that hands-free driving should be allowed is greater than 50% (using = .01)? Use the hypothesis testing procedure outlined below:

a. Formulate the null and alternative hypotheses.

b. State the level of significance.

c. Find the critical value or values and clearly show the rejection and non-rejection regions.

d. Calculate the test statistic.

e. Decide whether you can reject H_{0} or whether you fail to reject.

f. Explain and interpret your conclusion in part e. What does this mean?

g. Find the observed p-value for the hypothesis test and interpret this value. What does this mean?

h. Do the sample data provide evidence, at = .01, that the percentage of people who believe that drivers should use cell phones with hands-free devices is greater than 58%?