FRQ 1 One popular activity that tourists participate in when they visit Alaska is panning for gold. A gift shop by
the panning center sells blocks of clay. The packaging on the clay claims that one in five blocks contains
gold. A frequent purchaser of this item believes that this is an overstatement. To investigate, he
purchases a random sample of 50 blocks from the large display in the store and finds that 8 of the blocks
contain gold.
Based on this sample, is there convincing evidence that the true proportion of blocks that contain gold is
less than 0.20? Use a = 0.10. Provide statistical evidence to support your answer.