LS1271: A manufacturer of LCD TV claims that it is becoming quite popular, and that about 5% homes are having LCD TV. However, a dealer of conventional TVs claims that the percentage of homes with LCD TV is less than 5%. A sample of 400 household is surveyed, and it is found that only 18 household have LCD TV. Test at 1% level of significance whether the claim of the company is tenable

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Question: A manufacturer of LCD TV claims that it is becoming quite popular, and that about 5% homes are having LCD TV. However, a dealer of conventional TVs claims that the percentage of homes with LCD TV is less than 5%. A sample of 400 household is surveyed, and it is found that only 18 household have LCD TV. Test at 1% level of significance whether the claim of the company is tenable.


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