In April of 2011,the unemployment rate in Canada was reported to be 7.6%.Suppose we claim that the current unemployment rate differs from the April 2011 unemployment rate.Statistics Canada claims that the current unemployment rate is lower than that of April 2011.To test this claim,a hypothesis test is conducted and yields a P-value turns out to be 0.04.Provide an appropriate conclusion.
A)If the current unemployment rate is 7.6%,there there is a 4% chance of seeing a sample unemployment rate as low (or lower)than what we observed from natural sampling variation.There is no evidence of that the unemployment rate decreased,but we can not conclude there is no change in the unemployment rate.
B)There is a 4% chance of no change in the unemployment rate.
C)There is a 96% chance of no change in the unemployment rate.
D)We can say there is a 4% chance of seeing a change in the unemployment rate in the results we observed from natural sampling variation.We conclude the Statistics Canada is correct and the unemployment rate has decreased.
E)If the current unemployment rate is 7.6%,there there is a 4% chance of seeing a sample unemployment rate as low (or lower)than what we observed from natural sampling variation.There is strong evidence that Statistics Canada is correct and the unemployment rate has decreased.

Question

Quizplus · Accepted Answer

With a P-value of 0.04, we can conclude that there is a low probability of the observed result occurring by chance alone. Therefore, we reject the null hypothesis and accept the alternative hypothesis that the current unemployment rate is lower than that of April 2011. Additionally, there is strong evidence that Statistics Canada's claim is correct, and the unemployment rate has decreased.

In April of 2011,the Unemployment Rate in Canada Was Reported