Question: An insurance company states that 75% of its claims are settled within 5 weeks.  A consumer group selected a random sample of 70 of the company’s claims and found 58 of the claims were settled within 5 weeks. Is there enough evidence to support the consumer group’s claim that fewer than 75% of the claims were settled within 5 weeks?  Test using the traditional approach with α = 0.05.

 State the null and alternate hypotheses

 Calculate the sample proportion

 Determine which test statistic applies, and calculate it

 Determine the critical value(s).

 State your decision: Should the null hypothesis be rejected?

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