A building contractor/engineer is increasing his price for building projects, claiming that the cost of labor and material is going up and accounts for 65% of his budget. In a random sample of 30 of his projects it is found that in 20 of the projects the cost of the material is higher. At the 5% level of significance, test the contractor/engineer’s claim. Based on the test, what can you conclude?
Select one:

a.
Accept the null hypothesis

b.
Reject the null hypothesis


#OED