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%
E) None of these statements are true

Question

Quizplus · Accepted Answer

The test statistic is calculated as -0.866, which does not fall in the critical region beyond -2.33 for a two-tailed test at the 0.02 significance level. Thus, we do not reject the null hypothesis.

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