Exhibit 9-6. The Institute of Education Sciences measures the high school dropou

Question

Exhibit 9-6.

The Institute of Education Sciences measures the high school dropout rate as the percentage of 16- through 24-year-olds who are not enrolled in school and have not earned a high school credential. In 2009, the high school dropout rate was 8.1%. A polling company recently took a survey of 1000 people between the ages of 16 and 24 and found 6.5% of them are high school dropouts. The polling company would like to determine whether the dropout rate has decreased.

Refer to Exhibit 9-6. At a 5% significance level, the decision is to ____________.

reject we can conclude that the high school dropout rate has decreased

reject we cannot conclude that the high school dropout rate has decreased

do not reject we can conclude that the high school dropout rate has decreased

do not reject we cannot conclude that the high school dropout rate has decreased

Explanation / Answer

The statistical software output for this problem is:

One sample proportion summary hypothesis test:
p : Proportion of successes
H0 : p = 0.081
HA : p < 0.081

Hypothesis test results:

Hence,

At 5% significance level, the decision is to reject Ho; we can conclude that the high school dropout rate has decreased.

Option A is correct.

Proportion Count Total Sample Prop. Std. Err. Z-Stat P-value p 65 1000 0.065 0.0086278039 -1.8544696 0.0318

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