A Small Private College Is Interested in Determining the Percentage

question 31

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 0.02.

• A) Reject H0 if z < -2.055.
• B) Reject H0 if z < -2.326 or z > 2.326.
• C) Reject H0 if z < -2.326.
• D) Reject H0 if z < -1.96.

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Definitions:

Accounts Payable

Liabilities of a business that are owed to creditors for goods and services purchased on credit.

Inventory

The raw materials, work-in-process products, and finished goods that a company holds for the purpose of sale in the near future.

Net Loss

A situation where total expenses exceed total revenues during a specific period, resulting in negative profit.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specific period.