The claim that \"40% of those persons who retired from an industrial job before

Question

The claim that "40% of those persons who retired from an industrial job before the age of 60 would return to work if a suitable job was available," is to be investigated at the 0.02 level of risk. If 75 out of the 200 workers sampled said they would return to work, what is our decision?

a. Do not reject the null hypothesis because -0.722 lies in the region between 0 and -2.05

b. Do not reject the null hypothesis because -0.722 lies in the region between 0 and -2.33

c. Reject the null hypothesis because 38% is less than 40%

d. Do not reject the null hypothesis because 38% lies in the area between 0% and 40%

Explanation / Answer

sample proportion is 75/200= .375
z= (.375-.40)/.40*.60/200= -0,722

B is the answer (since this is a two tailed test CV is -2.33, 2.33)

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