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.In 2009,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 decision is to ____________. A) reject H_o;we can conclude that the high school dropout rate has decreased B) reject H_o;we cannot conclude that the high school dropout rate has decreased C) do not reject H_o;we can conclude that the high school dropout rate has decreased D) do not reject H_o;we cannot conclude that the high school dropout rate has decreased

Question

Quizplus · Accepted Answer

The null hypothesis (H₀) is that the dropout rate has not decreased, i.e., it is still 8.1%. The alternative hypothesis (H₁) is that the dropout rate has decreased. Given the sample dropout rate of 6.5% and using a 5% significance level, if the test statistic falls in the critical region, we reject H₀. Since the sample rate is significantly lower than 8.1%, we reject H₀ and conclude that the dropout rate has decreased.

The Institute of Education Sciences Measures the High School Dropout