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In a random sample of 600 advertisements for apartments to rent in Vancouver, 5.6% indicated that...

In a random sample of 600 advertisements for apartments to rent in Vancouver, 5.6% indicated that cats and dogs were allowed. In Toronto, 8.1% of all apartments for rent indicate that cats and dogs are allowed. Is Vancouver significantly less pet-friendly than Toronto? Use alpha = 0.05 and the hypotheses below.

H0: p = 0.081

HA: p < 0.081

What is the test statistic?

What is the critical value for this hypothesis test?

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Answer #1

Test statistic

\small z = \frac{0.056-0.081}{\sqrt{0.081*(1-0.081)/600}}

z = -2.24

Level of significance = 0.05

So,

Critical value for the left tailed test = -1.645

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