The policy of the Suburban Transit Authority is to add a bus route if more than 63% of the potential commuters indicate they would use the particular route. A sample of 78 commuters revealed that 50 would use a proposed route from Bowman Park to the downtown area. Does the Bowman-to-downtown route meet the STA criterion? Use the 0.10 significance level.
a. What is the decision rule? (Round the final answer to 3 decimal places.)
Reject H0: p ≤ 0.63 and accept H1: p > 0.63 when the test statistic is (Click to select) greater than less than equal to .
b. Compute the value of the test statistic. (Round the final answer to 3 decimal places.)
Value of the test statistic
c. What is your decision regarding H0?
H0 is (Click to select) rejected not rejected.
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