A city claims that 75% of all low income housing is 1500 sq.ft.The tenants believe the proportion of housing this size is smaller than the claim,and hire an independent firm to test a random sample size of 120 and found 1500 sq.ft.housing at 66%.State the critical value required to perform an appropriate hypothesis test using α = 0.001.

Question

Quizplus · Accepted Answer

For a one-tailed test with α = 0.001, the critical value corresponds to the z-score that has 0.001 area in the tail. The negative sign indicates the tenants believe the proportion is smaller, so -3.09 is the correct critical value for α = 0.001 on the left tail of the distribution.

A City Claims That 75% of All Low Income Housing