Suppose that a company operating a ride-sharing service


Part (a) Suppose that a company operating a ride-sharing service claims that at least 40 percent of their drivers receive a tip from their customers. Based on what you heard from a friend who drives for the ride-sharing service, you feel that that claimed number is too high, so you ask 60 drivers whether they received a tip for the last ride they completed. Of the 60 individuals, 19 indicate that they did receive a tip. Using an alpha of 0.05, carry out a hypothesis test for the company’s claim.

Part (b) Still using a significance level of 0.05, what is the largest number of drivers that receive a tip (in the sample of 60 drivers) that would lead to the rejection of the company’s claim? Please note that you must show your work!

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Business Economics: Suppose that a company operating a ride-sharing service
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