Question

Because of the outbreak of the coronavirus, students of UM are allowed to opt for Pass/Fail grade for courses they enroll in the second semester of 2019/2020. An instructor of ISOM2002 believes that there will be more than 35% of the students in the course choosing this option. A random sample of 40 students of ISOM2002 reveals that 16 of them prefer to take the Pass/Fail option. At 5% level of significance, what would be the rejection rule if we want to test the instructor’s belief?

Select one:

a. Reject H₀ if t_STAT < ‒1.6849

b. Reject H₀ if Z_STAT < ‒1.645

c. Reject H₀ if Z_STAT > 1.645

d. Reject H₀ if t_STAT > 1.6849

Answer 1

Solution:

This a right (One) tailed test.

The null and alternative hypothesis is,

Ho: p = 0.35

Ha: p 0.35

Critical value of  the significance level is α = 0.05, and the critical value for a right-tailed test is

$Z_{c}$ = 1.645

The rejection rule if we want to test the instructor’s belief is,

Reject H₀ if Z_STAT > 1.645

Option c is correct.