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The Answer to Hypothesis Testing: Five Step Method Z-test

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It has been reported that 10.3% of U.S. households do not own a vehicle, with 34.2% owning 1 vehicle, 38.4% owning 2 vehicles, and 17.1% owning 3 or more vehicles. The data for a random sample of 100 households in a resort community are summarized in the frequency distribution below. At the 0.05 level of significance, can we reject the possibility that the vehicle-ownership distribution in this community differs from that of the nation as a whole?

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The solution provides step by step method for the calculation of Z test for proportion. Formula for the calculation and Interpretations of the results are also included.

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