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 -0.879 lies in the region between +2.326 and -2.326.
B) Do not reject the null hypothesis because -0.879 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 sample proportion is 74/200 = 0.37, and the standard error of the proportion is sqrt(0.4 * 0.6 / 200) = 0.044. The test statistic is (0.37 - 0.4) / 0.044 = -0.879. The critical value for a two-tailed test at the 0.02 significance level is 2.326. Since -0.879 lies in the region between +2.326 and -2.326, we do not reject the null hypothesis.

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