SOLUTION: Test at the 0.01 level the statement that 55% of those families who plan to purchase a vacation residence in Florida want a condominium. The null hypothesis is p = 0.55 and the alt

Question 144954: Test at the 0.01 level the statement that 55% of those families who plan to purchase a vacation residence in Florida want a condominium. The null hypothesis is p = 0.55 and the alternate is p  0.55. A random sample of 400 families who planned to buy a vacation residence revealed that 228 families want a condominium. What decision should be made regarding the null hypothesis? The Z critical is 2.576 and the test statistic calculates to : (228/400 - .55)/ sqrt(.55(.45)/400) = 0.8.
A) Do not reject it
B) Reject it
C) Cannot accept nor reject it based on the information given
D) None of the above

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Test at the 0.01 level the statement that 55% of those families who plan to purchase a vacation residence in Florida want a condominium. The null hypothesis is p = 0.55 and the alternate is p  0.55. A random sample of 400 families who planned to buy a vacation residence revealed that 228 families want a condominium. What decision should be made regarding the null hypothesis? The Z critical is 2.576 and the test statistic calculates to : (228/400 - .55)/ sqrt(.55(.45)/400) = 0.8.
A) Do not reject it
B) Reject it
C) Cannot accept nor reject it based on the information given
D) None of the above
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Since the test statistic is 0.8 < 2.576, Fail to reject Ho.
Answer: A
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Cheers,
Stan H.
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