Finding the value of the test statistic


The following hypotheses are given.

H0: p = .40
H1: p ≠ .40

A sample of 120 observations revealed that = .30. At the .05 significance level, can the null hypothesis be rejected?

a. State the decision rule.

b. Compute the value of the test statistic.

c. What is your decision regarding the null hypothesis?

Note: It is recommended that you use the five-step hypothesis procedure in solving the following problems.

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Basic Statistics: Finding the value of the test statistic
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