Solution:
From the given information,
Test is right tailed or upper tailed test.
Test statistic formula for this test is given as below:
Z = (p̂ - p)/sqrt(pq/n)
Where, p̂ = Sample proportion, p is population proportion, q = 1 - p, and n is sample size
x = number of items of interest = 20
n = sample size = 300
p̂ = x/n = 20/300 = 0.066666667
p = 0.037
q = 1 - p = 0.963
Z = (p̂ - p)/sqrt(pq/n)
Z = (0.066666667 - 0.037)/sqrt(0.037*0.963/300)
Z = 2.7222
Test statistic = Z = 2.722
Level of significance = α = 0.05
So, the critical Z value by using z-table is given as below:
Critical value = 1.645
Test statistic value is greater than critical value, so we reject the null hypothesis.
So, given statement is true.
Answer: True
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