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 t_STAT < ‒1.6849

c. Reject H₀ if Z_STAT > 1.645

d. Reject H₀ if Z_STAT < ‒1.645

Answer 1

Define , p : Population proportion of students of UM who are allowed to opt for Pass/Fail grade for courses they enroll in the second semester of 2019/2020.

To test :

Test statistic :

We reject H0 if the observed value of , where ,

Thus , we reject H0 if  

c. Reject H0 if ZSTAT > 1.645

The correct option is ( c )