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.