(1 point) An insurance company states that at least 86% of itsclaims are settled within 30 days. A consumer group selected arandom sample of 73 of the company's claims to test this statement.They found that 60 of the claims were settled within 30 days. Doesthe consumer group have evidence to disbelieve the insurancecompany's claim?
1. Write the hypotheses to test if the rate ofclaims settled within 30 days is significantly less than 86%.
H0H0: The proportion of claims settled within 30days  ? is equal to is less than is morethan  86%.
HAHA: The proportion of claims settled within 30days  ? is equal to is less than is morethan  86%.
2. To setup a simulation for this situation, welet each claim be represented with a card. We take 100cards,  black cards represent claims that are settledwithin 30 days and  red cards represent claims that takelonger than 30 days to settle. Shuffle the cards anddraw  ? withwithout  replacement  cards representing therandom sample of claims. Calculate the proportion of  ?black red  cards in the  ? sampledeck  and call it p^simp^sim . Repeat 10,000 times andplot the resulting sample proportions. The p-value will be theproportion of simulations where p^simp^sim is  ? lessthan or equal to less than or equal to unequalto   .
3. Use the One Proportion Resampling test appembedded here to perform the simulation. Draw at least 3000samples. Report your p-value from the app here, rounded to fourdecimal places:
Use this external link to the One Proportion Resampling Test ifthe app does not load properly on your computer. (Right click toopen in a new tab or window.)
4. What is the correct conclusion, based onyour p-value?
A. The p-value is substantially larger than 0.05and we should reject the null hypothesis.
B. The p-value is substantially smaller than 0.05and we should not reject the null hypothesis.
C. The p-value is substantially larger than 0.05and we should not reject the null hypothesis.
D. The p-value is substantially smaller than 0.05and we should reject the null hypothesis.
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