The Institute of Education Sciences measures the high school dropout rate as the percentage of 16-through 24-year-olds who are not enrolled in school and have not earned a high school credential. Last year, the high school dropout rate was 8.1%. A polling company recently took a survey of 1,000 people between the ages of 16 and 24 and found that 6.5% of them are high school dropouts. The polling company would like to determine whether the dropout rate has decreased. At a 5% significance level, the p-value and α are ________.
A) z = -2.052
B) z = -1.8545
C) z = 1.8545
D) z = 2.052

Question

Quizplus · Accepted Answer

The p-value is associated with the calculated z-score, which in this case is -1.8545. This z-score is used to determine if the observed difference in dropout rates (from 8.1% to 6.5%) is statistically significant at the 5% level. The negative sign indicates that the observed rate is lower than the previous rate.

The Institute of Education Sciences Measures the High School Dropout