Based on information rom a large insurance company, 67% of all damage liability claims are made...

We want to test hypothesis: Ho p 0.67 Ha: p>0.67 This is an upper tailed test Null Hypothesis, Ho p0.67 is also correct) (Alternative Hypothesis, also called H1 r43 Sample proportion, p= 0.843137, n = 51 n 51 and claimed proportion. P = 0.67 Significance level, a = 0.05 now, calculating statistics P × (1-P) 0.67 × (1-0.67) 51 Standard Deviation of p, ơp 0.0658 (43/51)-0.67 -- 0.0658 p-0.67 «observed 2.629549 ~ 2.63 Test statistic,20-2.63 Since this is upper tailed test, p-value = P(Z > zobserved) = P(Z > 2.63) P(Z<-2.63) 0.0043 p-value:0.0043 Note that exact p-value for above test is: 0.0042749123 Rejection Criteria: Reject H0 ifp-value <a Decision : Since p-value < α, we reject) the null hypothesis. Hence at 5% significance level, we have sufficient evidence to conclude that p is greater than 0.67 Option D