Assignment:
A motel manager, concerned with customer theft of towels, decided that the theft rate might be reduced by changing from white, imprinted towels to a drab green version. Of the 120 guests provided with the white towels, 35% took at least one towel with them when they checked out. Of the 160 guests given the drab green towels, only 25% checked out with one or more towels in their possession. At the 0.01 level of significance, can we conclude that the manager’s idea is effective in reducing the rate of towel theft?
Provide complete and step by step solution for the question and show calculations and use formulas.