Question: An insurance company states that 75% of its claims are settled within 5 weeks. A consumer group selected a random sample of 60 of the company’s claims and found 40 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?