A Major Issue Facing Many States Is Whether to Legalize

question 34

Multiple Choice

A major issue facing many states is whether to legalize casino gambling. Suppose the governor of one state believes that more than 55% of the state's registered voters would favor some form of legal casino gambling. However, before backing a proposal to allow such gambling, the governor has instructed his aides to conduct a statistical test on the issue. To do this, the aides have hired a consulting firm to survey a simple random sample of 300 voters in the state. Of these 300 voters, 175 actually favored legalized gambling. State the appropriate null and alternative hypotheses.

• A) H0 : p = 0.58 Ha : p ≠ 0.58
• B) H0 : p ≤ 0.55 Ha : p > 0.55
• C) H0 : p = 0.55 Ha : p ≠ 0.55
• D) H0 : p ≤ 0.58 Ha : p > 0.58

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Definitions:

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a later date.

Financial Statements

Papers detailing a corporation's fiscal health through various financial records such as balance sheets, income statements, and cash flow reports.

Small Co.

A colloquial term generally referring to a small company or corporation with limited resources and market share.

Recognized as Shareholder

Being officially acknowledged or identified as having legal ownership and rights in a corporation's shares.