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Because of the outbreak of the coronavirus, students of UM are allowed to opt for Pass/Fail...

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 tSTAT > 1.6849

b. Reject H0 if tSTAT < ‒1.6849

c. Reject H0 if ZSTAT > 1.645

d. Reject H0 if ZSTAT < ‒1.645

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