Given that Z_STAT = +1.32, suppose you are testing the null hypothesis H_0: pi =

Question

Given that Z_STAT = +1.32, suppose you are testing the null hypothesis H_0: pi = 0.40 against the two-tail alternative hypothesis H_1: pi notequalto 0.40 you choose the level of significance 0.01. What is your statisfical decision? Identify the critical values. The critical values are (Round to two decimal places as needed. Use a comma to separate answers as needed.) What is the appropriate conclusion? Fail to reject H_0. There is insufficient evidence that the proportion is different than 0.40. Fail to reject H_0. There is sufficient evidence that the proportion is different than 0.40. Reject H_0. There is sufficient evidence that the proportion is different than 0.40. Reject H_0. There is insufficient evidence that the proportion is different than 0.40.

Explanation / Answer

As this is two tailed, 0.01 level, then the critical values of z using the table is

zcrit = -2.58, 2.58 [ANSWER]

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As z = 1.32, then -2.58 < z < 2.58. Hence,

OPTION A: Fail to reject Ho. There is insufficient evidence that the proportion is different from 0.40. [ANSWER, A]

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