In 10 mph crash tests,25% of certain type of automobiles sustain novisible damag

Question

In 10 mph crash tests,25% of certain type of automobiles sustain novisible damage. A modified bumper design has been proposed in aneffort to increase this percentage. Let p denote the probabilitythat a car with the modified bumper design sustains no visibledamage in a 10-mph crash test. Because of cost considerations, thenew design will not be implemented unless there is significantevidence that the new bumper design improves the crashtest results.Formulate this decision problem as a hypothesis testing problemby
   a) stating the null and alternative hypotheses.

Explanation / Answer

Null hypothesis: there is no statistically significant differencebetween the performance of the new bumper versus that of the oldbumper Alternative hypothesis: the performance of the new bumper isstatistically better than that of the old bumper.

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