Is the motor vehicle insurance advisors claim valid


A motor vehicle insurance advisor stated recently in a newspaper report that more than 60% of Cape Town motorists do not have motor vehicle insurance. A random survey amongst 150 motorists found that 54 do have motor vehicle insurance.

(a) Is the motor vehicle insurance advisor's claim valid? Formulate the null and alternative hypothesis and conduct a hypothesis test for a single proportion, using α = 0.05.

(b) Use the NORMSDIST function in Excel to compute the p-value of the test statistic. Interpret its value in terms of the insurance advisor's claim.

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