Question: A limousine company is concerned with increasing costs of maintaining
A limousine company is concerned with increasing costs of maintaining their fleet of 150 cars. After testing, the company found that the emissions systems of 7 out of the 22 cars they tested failed to meet pollution control guidelines. They had forecasted costs assuming that a total of 30 cars would need updating to meet the latest guidelines. Is this strong evidence that more than 20% of the fleet might be out of compliance? Test an appropriate hypothesis and state your conclusion. Be sure the appropriate assumptions and conditions are satisfied before you proceed.
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