Answer:
Yes, evidence shows that the cream will improve the skin of more than 40% of women over the age of 50 in 0.01 significance level.
Step-by-step explanation:
We need to make a hypothesis test.
Let p be the proportion of women who used cream report skin improvement.
[tex]H_{0}[/tex]: p=0.4
[tex]H_{0}[/tex]: p<0.4
To test the hypothesis, we need to calculate z-score of the sample mean and compare its probability with the significance level.
z=[tex]\frac{p(s)-p}{\sqrt{\frac{p*(1-p)}{N} } }[/tex] where
Putting the numbers:
z=[tex]\frac{0.5-0.4}{\sqrt{\frac{0.4*0.6}{70} } }[/tex] ≈ 1.71
And P(z<1.71) ≈ 0.955. Since 0.955>0.01 we fail to reject the null hypothesis that the cream will improve the skin of more than 40% of women.