Certain lottery claims that 10% of tickets win some prize. Sample of 50 tickets had 3 winners. At .01 level, test claim that proportion is 10%. State hypotheses and identify claim, find critical value(s), compute test value, make decision, summarize results.

**Solution: **The null and alternative hypotheses are

_{}

We use a z-test for proportions. We define_{}. The test statistics is computed as

_{}

The critical values at the 0.01 level of significance is_{}. This means that we fail to reject the null hypothesis. In other words, *we don’t have enough evidence to claim that the proportion is not 10%.*

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