Question

An online marketplace believes the markup for wholesale items is increasing this fiscal year. The online marketplace would like to test the claim that the average percent of wholesale markupis over 25%. Using the computed test statistic of 3.20 and the critical value of 1.65, is there enough evidence for the online marketplace to reject the null hypothesis?

Use the graph below to interpret the critical value. First select the appropriate test type (left-, right-, or two- tailed), then plot the points along the x-axis (for the critical value and test statistic), and use them to choose the appropriate interpretation.

Select the correct answer below:

Yes. There is sufficient evidence for the online marketplace to reject the null hypothesis because the test statistic falls in the rejection region.

No. There isNOT sufficient evidence for the online marketplace to reject the null hypothesisbecause the test statistic does not fall in the rejection region.

Yes. There is sufficient evidence for the online marketplace to reject the null hypothesis because the critical value falls in the rejection region.

No. There is NOTsufficient evidence for the online marketplace to reject the null hypothesisbecause the critical value does not fall in the rejection region.