An insurance company reports that 75% of its claims are settled within two months of being filed. In order to test that the percent is less than seventy-five, a state insurance commission randomly selects 35 claims and determines that 23 of the 35 were settled within two months. State the null and alternative hypothesis

We want to test that the percent is less than seventy-five so then the system of hypothesis are given by:

Null hypothesis:  

Alternative hypothesis:  

Step-by-step explanation:

Previous concepts

A hypothesis is defined as "a speculation or theory based on insufficient evidence that lends itself to further testing and experimentation. With further testing, a hypothesis can usually be proven true or false".  

The null hypothesis is defined as "a hypothesis that says there is no statistical significance between the two variables in the hypothesis. It is the hypothesis that the researcher is trying to disprove".  

The alternative hypothesis is "just the inverse, or opposite, of the null hypothesis. It is the hypothesis that researcher is trying to prove".  

Solution to the problem

For this case we can estimate the proportion of interest is given by:

We want to test that the percent is less than seventy-five so then the system of hypothesis are given by:

Null hypothesis:  

Alternative hypothesis:  

When we conduct a proportion test we need to use the z statisitc, and the is given by:  

(1)  

answer: there are 453.592 grams in a pound.