Check the validity of the claim


A local newspaper claims that 60% or more of the items advertised in its classified advertisement section are sold within 1 week of the first appearance of the ad. To check the validity of the claim, the newspaper randomly selected n = 25 advertisements from last years classified advertisements and contacted the people who placed the ads. They found that 14 of the 25 items sold within a week. Suppose that based on this evidence the newspaper infers that less than 60% of the items are sold within 1 week. Find the probability of the type I error, then state your conclusion in words of the problem at a level of significance of 0.07.

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Basic Statistics: Check the validity of the claim
Reference No:- TGS0118349

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