The Spark Freq research center claims that at least 50% of people believe that drivers ...

  

The Spark Freq research center claims that at least 50% of people believe that drivers should be allowed to use cellular-phones with hands-free devices while driving. In a random sample of 150 US adults, 58% say that drivers should be able to use cellular phones with hands-free devices. Does the sample data provide evidence to conclude that the percentage of people who believe that hands-free driving should be allowed is greater than 50% (using α = .01)? Use the hypothesis testing procedure outlined below:

a. Formulate the null and alternative hypotheses.

b. State the level of significance.

c. Find the critical value or values and clearly show the rejection and non-rejection regions.  

d. Calculate the test statistic. 

e. Decide whether you can reject H0 or whether you fail to reject.  

f. Explain and interpret your conclusion in part e.  What does this mean?

g. Find the observed p-value for the hypothesis test and interpret this value.  What does this mean?  

h. Do the sample data provide evidence, at α = .01, that the percentage of people who believe that drivers should use cell phones with hands-free devices is greater than 58%?