In April of 2011,the unemployment rate in Canada was reported to be 7.6%.You wish to know if the current unemployment rate differs from that of April 2011.You take a random sample size of 1000 and found unemployment at 6.1%.State the critical value required to perform an appropriate hypothesis test using α = 0.05.
A)1.282
B)1.96
C)2.576
D)1.645
E)3.09

Question

Quizplus · Accepted Answer

Since the sample size is large (n = 1000), we can use the normal distribution to perform the hypothesis test. Using a significance level of α = 0.05, the critical value for a two-tailed test can be found using a standard normal distribution table or calculator. The critical value is ±1.96, which corresponds with a 95% confidence level. So, if the calculated z-score falls outside of the range of ±1.96, we can reject the null hypothesis that the current unemployment rate is the same as that of April 2011.

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