Share
Explore BrainMass

Hypothesis Testing: The Claim of Returning to Work

The claim that ""40% of those persons who retired from an industrial job before the age of 60 would return to work if a suitable job was available" is to be investigated at the 0.02 level of risk. If 74 out of the 200 workers sampled said they would return to work, what is our decision?

(a) Do not reject the null hypothesis because -0.866 lies in the region between 0 and -2.58.
(b) Do not reject the null hypothesis because -0.866 lies in the region between 0 and -2.33.
(c) Reject the null hypothesis because 37% is less than 40%.
(d) Do not reject the null hypothesis because 37% lies in the area between 0 and 40%.
(e) None of the above.

Solution Preview

Standard Error = (p*q/n)^0.5 = (40%*60%/200)^0.5=0.034641016
Test statistic = (p ...

Solution Summary

This solution responds to a problem on hypothesis testing. The concepts covered by this response include the test for proportions, understanding the critical region and calculating the z-statistics and z test. All required calculations are included.

$2.19