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 significance level. If 74 out of the 200 workers sampled said they would return to work,what is our decision?
A)Do not reject the null hypothesis because −0.866 lies in the region between +2.326 and −2.326.
B)Do not reject the null hypothesis because −0.866 lies in the region between +2.576 and −2.576.
C)Reject the null hypothesis because 37% is less than 40%.
D)Do not reject the null hypothesis because 37% lies in the area between 0% and 40%.

Question

Quizplus · Accepted Answer

The decision is based on the z-score calculation and its comparison to the critical value at a 0.02 significance level. The calculated z-score of -0.866 does not exceed the critical z-values of ±2.326, indicating that the observed proportion (37%) does not significantly differ from the hypothesized proportion (40%) at the 0.02 significance level.

The Claim That "40% of Those Persons Who Retired from an Industrial