Step 1 :Step 1: Define the null hypothesis \(H_0\) and alternative hypothesis \(H_1\). \(H_0: p = 0.10\) and \(H_1: p > 0.10\)
Step 2 :Step 2: Calculate the test statistic: \(z = \frac{\hat{p} - p_0}{\sqrt{\frac{p_0(1 - p_0)}{n}}}\) with \(\hat{p}=0.16\), \(p_0=0.10\), and \(n=700\)
Step 3 :Step 3: Determine the critical value \(z_\alpha\) corresponding to the significance level \(\alpha = 0.10\) and compare it with the calculated test statistic to make a decision.