Critical Value: Z = 2

question 103

Multiple Choice

Critical value: z = 2.33. Fail to reject null hypothesis. There is not sufficient evidence to support the claim
that more than half of all those using the drug experience relief.
-A medical school claims that more than 28% of its students plan to go into general practice. It is found that among a random sample of 130 of the school's students, 32% of them plan to go into general practice. Find the
P-value for a test to support the school's claim.

• A) 0.3078
• B) 0.1635
• C) 0.3461
• D) 0.1539

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Definitions:

Strike Price

The set price at which the holder of an options contract can buy (in the case of a call) or sell (in the case of a put) the underlying asset.

Market Price

The present value at which a good or service may be purchased or sold in a market.

Option Clearing Corporation

An organization that facilitates the clearing and settlement of options contracts, ensuring their performance.

Stock Options

Contracts that grant the holder the right, but not the obligation, to buy or sell a stock at a specified price before a specified date.