Suppose that the unemployment rate for 18- to 34-year-olds was reported to be10.8%. Assume that this report was based on a random sample offour hundred18- to34-year-olds.

(a)

A political campaign manager wants to know if the sample results can be used to conclude that the unemployment rate for 18- to34-years-oldsis significantly higher than the unemployment rate for all adults. According to the Bureau of Labor Statistics, the unemployment rate for all adults was 7.9%. Develop a hypothesis test that can be used to see if the conclusion that the unemployment rate is higher for 18- to34-year-oldscan be supported.

H₀:p= 0.079

H_a:p0.079

H₀:p< 0.079

H_a:p0.079

H₀:p0.079

H_a:p> 0.079

H₀:p0.079

H_a:p< 0.079

H₀:p> 0.079

H_a:p0.079

(b)

Use the sample data collected for the 18- to 34-year-olds to compute thep-value for the hypothesis test in part (a). Using= 0.05,

what is your conclusion?

Find the value of the test statistic. (Round your answer to two decimal places.)

Find thep-value. (Round your answer to four decimal places.)

p-value =

State your conclusion.

Do not rejectH₀. We can not conclude that the unemployment rate for 18- to34-year-oldsis significantly higher than the national unemployment rate of 7.9% for all adults.

RejectH₀. We can not conclude that the unemployment rate for 18- to34-year-oldsis significantly higher than the national unemployment rate of 7.9% for all adults.

RejectH₀. We can conclude that the unemployment rate for 18- to34-year-oldsis significantly higher than the national unemployment rate of 7.9% for all adults.

Do not rejectH₀. We can conclude that the unemployment rate for 18- to34-year-oldsis significantly higher than the national unemployment rate of 7.9% for all adults.

(c)

Explain to the campaign manager what can be said about the observed level of significance for the hypothesis testing results using thep-value.

The observed level of significance is

---Select---

less than

equal to

greater than

, therefore the results

---Select---

are

are not

statistically significant. At the givenwe

---Select---

would not

would

reject the null hypotheses and conclude that sufficient evidence

---Select---

exists

does not exist

to support the conclusion the proportion of adults aged 18 to 34 who were unemployed was higher than the national unemployment rate for all adults.