Question 2
A researcher is investigating whether the proportion of families who do not own a car in his town is different from the proportion of the population in the whole country, which is 10.1%. He takes a large random sample of families in his town and finds the proportion of families that do not own a car.
Question 2(a)
Explain why a two-tailed test is appropriate in this context.
Question 2(b)
State suitable null and alternative hypotheses for the test.
The researcher calculates the value of the test statistic z and finds that z=1.82. He carries out the test at the 5\% significance level.
