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 74 out of the 200 workers sampled said they would return to work, what is our decision?
A) Do no reject the null hypothesis because -0.866 lies in the region between 0 and -2.33
B) Do not reject the null hypothesis because -0.866 lies in the region between 0 and -2.58
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 with the critical value at a 0.02 level of risk. The calculated z-score of -0.866 does not exceed the critical value (approximately -2.33 for a one-tailed test at the 0.02 level), indicating that the difference between the sample proportion (37%) and the population proportion (40%) is not statistically significant. Therefore, we do not reject the null hypothesis.

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