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 crash testresults. Formulate this decision problem as a hypothesis testingproblem by
==> stating what action should be taken if the null hypothesisis rejected.

Explanation / Answer

If the null hypothesis is rejected, it means that the performanceof the new bumper is significantly better than that of the oldbumper. The new bumper should be put into production.

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