Question: A financial advisor claims that less then 50% of adults in the United States have a will. A random sample of 1000 adults showed that 450 of them have a will.
a. At the 5% significance level, can you conclude that the percentage of people who have a will is less than 50%?
b. What is the Type I error in part a? What is the probability of making this error?
c. What would your decision be in part a if the probability of making a Type I error were zero? Explain
d. Find the p-value for the test of hypothesis mentioned in part a. Using this p-value, will you reject the null hypothesis if α = .05? What if α = .01?