Question: An exterminator claims that 5% or fewer of the homes that he treats have termite problems within one year after treatment. In a sample of 100 homes that the exterminator treated, the State Termite Board found that 10 homes had termites within one year after treatment. At alpha (α) = 5% evaluate the exterminator’s claim. Show all work.

a) Write the null and alternative hypothesis.

b) What is the calculated Z-value?

c) What is the critical value? You may calculate the p-value instead of the critical value.

d) Is the null hypothesis accepted or rejected and why?