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An insurance company states that 75% of its claims are settled within 5 weeks.

An insurance company states that 75% of its claims are settled within 5 weeks. A consumer group selected a random sample of 70 of the company’s claims and found 58 of the claims were settled within 5 weeks. Is there enough evidence to support the consumer group’s claim that fewer than 75% of the claims were settled within 5 weeks? Test using the traditional approach with α = 0.05.
· State the null and alternate hypotheses
· Calculate the sample proportion
· Determine which test statistic applies, and calculate it
· Determine the critical value(s).
· State your decision: Should the null hypothesis be rejected?

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