The manager of Tea for Us has been ordering stock based on the assumption that 70% of her customers prefer black teas. The following hypotheses are given:

H₀: p = 0.70

H₁: p 0.70

She sampled 122 of her customers and found that only 60% of those preferred black teas. At the 0.05 significance level, can the null hypothesis be rejected?

a. State the decision rule. (Negative answer should be indicated by a minus sign. Round the final answers to 2 decimal places.)

(Click to select) Not reject Reject H₀ (Click to select) and accept and reject H₁ if z > or z < .

b. Compute the value of the test statistic. (Negative answer should be indicated by a minus sign. Round your answer to 2 decimal places.)

Value of the test statistic

c. What is your decision regarding the null hypothesis?

The null hypothesis is (Click to select) Rejected Not rejected .