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 significance level. If 74 out of the 200 workers sampled said they would return to work, what is our decision?
A)Do not reject the null hypothesis because -0.879 lies in the region between +2.326 and -2.326.
B)Do not reject the null hypothesis because -0.879 lies in the region between +2.5760 and -2.576.
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%.

Question

Quizplus · Accepted Answer

The decision is based on the z-score calculated from the sample proportion and the population proportion. The z-score of -0.879 does not exceed the critical value of ±2.326 for a 0.02 significance level, indicating that the difference between the sample proportion (37%) and the population proportion (40%) is not statistically significant. Therefore, we do not reject the null hypothesis.

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