A Small Private College Is Interested in Determining the Percentage $\mathrm { H } _ { 0 }$

question 2

Multiple Choice

A small private college is interested in determining the percentage of its students who live off campus and drive to class. Specifically, it was desired to determine if less than 20% of their current students live off campus and drive to class. Find the large-sample rejection region for the test of interest to the college when using a level of significance of 0.01.

• A) Reject \(\mathrm { H } _ { 0 }\) if \(\mathrm { z } < - 1.28\).
• B) Reject \(\mathrm { H } _ { 0 }\) if \(\mathrm { z } < - 1.96\).
• C) Reject \(\mathrm { H } _ { 0 }\) if \(\mathrm { z } < - 2.33\) or \(\mathrm { z } > 2.33\).
• D) Reject \(\mathrm { H } _ { 0 }\) if \(\mathrm { z } < - 2.33\).

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Definitions:

Aggregate Markets

Aggregate markets are large-scale markets that collectively encompass all buyers and sellers in an economy, dealing with the overall demand and supply rather than with individual products.

Postulate Of Economics

Fundamental assumptions that serve as the foundation for economic theories and models, such as rational behavior and market efficiency.

Incentives

Factors, either monetary or non-monetary, that motivate individuals or businesses to act in a certain way.

Scarce

A characteristic of resources that are limited in availability, which can lead to competition for their use.