144) For the following hypothesis test:

With n= 64 and *p*= 0.42, state the decision rule in terms of the critical value of the test statistic

A) The decision rule is: reject the null hypothesis if the calculated value of the test statistic, z, is greater than 2.013 or less than -2.013. Otherwise, do not reject.

B) The decision rule is: reject the null hypothesis if the calculated value of the test statistic, z, is less than 2.013 or greater than -2.013. Otherwise, do not reject.

C) The decision rule is: reject the null hypothesis if the calculated value of the test statistic, z, is greater than 2.575 or less than -2.575. Otherwise, do not reject.

D) The decision rule is: reject the null hypothesis if the calculated value of the test statistic, z, is less than 2.575 or greater than -2.575. Otherwise, do not reject.

145) For the following hypothesis test:

With *n* = 64 and *p* = 0.42, state the calculated value of the test statistic

A) t = 0.4122

B) t = 1.7291

C) z = 0.3266

D) z = 1.2412

146) For the following hypothesis test:

With n= 0.42 and *p* = 0.42, state the conclusion

A) Because the calculated value of the test statistic, t=0.4122, is neither greater than 2.013 nor less than -2.013, do not reject the null hypothesis and conclude that the population proportion is not different from 0.40.

B) Because the calculated value of the test statistic, t=1.7291, is neither greater than 2.013 nor less than -2.013, do not reject the null hypothesis and conclude that the population proportion is not different from 0.40.

C) Because the calculated value of the test statistic, z = 1.2412, is neither greater than 2.575 nor less than -2.575, do not reject the null hypothesis and conclude that the population proportion is not different from 0.40.

D) Because the calculated value of the test statistic, z = 0.3266, is neither greater than 2.575 nor less than -2.575, do not reject the null hypothesis and conclude that the population proportion is not different from 0.40.

147) For the following hypothesis test

With n = 100 and p = 0.66, state the decision rule in terms of the critical value of the test statistic

A) The decision rule is: reject the null hypothesis if the calculated value of the test statistic, z, is less thanthe critical value of the test statistic z = -1.96. Otherwise, do not reject.

B) The decision rule is: reject the null hypothesis if the calculated value of the test statistic, z, is less than the critical value of the test statistic z = -1.645. Otherwise, do not reject.

C) The decision rule is: reject the null hypothesis if the calculated value of the test statistic, z, is greater than the critical value of the test statistic z = 1.96. Otherwise, do not reject.

D) The decision rule is: reject the null hypothesis if the calculated value of the test statistic, z, is greater than the critical value of the test statistic z = 1.645. Otherwise, do not reject.

148) For the following hypothesis test

With n = 100 and p = 0.66, state the calculated value of the test statistic.

A) 2.7299

B) -2.0785

C) 1.4919

D) -0.3421

149) For the following hypothesis test

With n = 100 and p = 0.66, state the conclusion.

A) Because the computed value of *z *= -2.0785 is less than the critical value of *z* = -1.96, reject the null hypothesis and conclude that the population proportion is less than 0.75.

B) Because the computed value of *z *= -0.3412 is less than the critical value of *z* = -1.645, reject the null hypothesis and conclude that the population proportion is less than 0.75.

C) Because the computed value of *z *= 1.4919 is greater than the critical value of *z* = -1.96, accept the null hypothesis and conclude that the population proportion is greater than 0.75.

D) Because the computed value of *z* = -0.3412 is greater than the critical value of *z* = -1.645, accept the null hypothesis and conclude that the population proportion is greater than 0.75.

150) Suppose a recent random sample of employees nationwide that have a 401(k) retirement plan found that 18% of them had borrowed against it in the last year. A random sample of 100 employees from a local company who have a 401(k) retirement plan found that 14 had borrowed from their plan. Based on the sample results, is it possible to conclude, at the *α* = 0.025 level of significance, that the local company had a lower proportion of borrowers from its 401(k) retirement plan than the 18% reported nationwide?

A) The *z*-critical value for this lower tailed test is *z* = -1.96. Because -1.5430 is greater than the *z*-critical value we do not reject the null hypothesis and conclude that the proportion of employees at the local company who borrowed from their 401(k) retirement plan is not less than the national average.

B) The *z*-critical value for this lower tailed test is *z* = -1.96. Because -1.0412 is greater than the *z*-critical value we do not reject the null hypothesis and conclude that the proportion of employees at the local company who borrowed from their 401(k) retirement plan is not less than the national average.

C) The z-critical value for this lower tailed test is *z* = 1.96. Because 1.5430 is less than the z-critical value we do not reject the null hypothesis and conclude that the proportion of employees at the local company who borrowed from their 401(k) retirement plan is not less than the national average.

D) The *z*-critical value for this lower tailed test is *z* = 1.96. Because 1.0412 is less than the *z*-critical value we do not reject the null hypothesis and conclude that the proportion of employees at the local company who borrowed from their 401(k) retirement plan is not less than the national average.

151) An issue that faces individuals investing for retirement is allocating assets among different investment choices. Suppose a study conducted 10 years ago showed that 65% of investors preferred stocks to real estate as an investment. In a recent random sample of 900 investors, 540 preferred real estate to stocks. Is this new data sufficient to allow you to conclude that the proportion of investors preferring stocks to real estate has declined from 10 years ago? Conduct your analysis at the *α* = 0.02 level of significance.

A) Because *z* = -1.915 is not less than -2.055, do not reject *H**0*. A higher proportion of investors prefer stocks today than 10 years ago.

B) Because *z* = -1.915 is not less than -2.055, do not reject *H**0*. A lower proportion of investors prefer stocks today than 10 years ago.

C) Because *z* = -3.145 is less than -2.055, reject *H**0*. A lower proportion of investors prefer stocks today than 10 years ago.

D) Because *z* = -3.145 is less than -2.055, reject *H**0*. A higher proportion of investors prefer stocks today than 10 years ago.

152) A major issue facing many states is whether to legalize casino gambling. Suppose the governor of one state believes that more than 55% of the state’s registered voters would favor some form of legal casino gambling. However, before backing a proposal to allow such gambling, the governor has instructed his aides to conduct a statistical test on the issue. To do this, the aides have hired a consulting firm to survey a simple random sample of 300 voters in the state. Of these 300 voters, 175 actually favored legalized gambling.

State the appropriate null and alternative hypotheses.

A) *H**0 *: *p* = 0.58 *H**a* : *p* ≠ 0.58

B) *H**0 *: *p* ≤ 0.55 *H**a* : *p* > 0.55

C) *H**0 *: *p* = 0.55 *H**a* : *p ≠* 0.55

D) *H**0 *: *p* ≤ 0.58 *H**a *: *p* > 0.58

153) A major issue facing many states is whether to legalize casino gambling. Suppose the governor of one state believes that more than 55% of the state’s registered voters would favor some form of legal casino gambling. However, before backing a proposal to allow such gambling, the governor has instructed his aides to conduct a statistical test on the issue. To do this, the aides have hired a consulting firm to survey a simple random sample of 300 voters in the state. Of these 300 voters, 175 actually favored legalized gambling.

Assuming that a significance level of 0.05 is used, what conclusion should the governor reach based on these sample data?

A) Since *z* = 1.1594 < 1.645, do not reject the null hypothesis.

The sample data do not provide sufficient evidence to conclude that more than 55 percent of the population favor legalized gambling.

B) Since *z* = 2.1316 > 1.645, reject the null hypothesis.

The sample data provide sufficient evidence to conclude that more than 55 percent of the population favor legalized gambling.

C) Since *z* = 1.1594 < 1.645, do not reject the null hypothesis.

The sample data do not provide sufficient evidence to conclude that more than 58 percent of the population favor legalized gambling.

D) Since *z* = 2.1316 > 1.645, reject the null hypothesis.

The sample data provide sufficient evidence to conclude that more than 58 percent of the population favor legalized gambling.

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