Question
The policy of the Suburban Transit Authority is to add a bus route if more than 55% of the potential commuters indicate they would use
| The policy of the Suburban Transit Authority is to add a bus route if more than 55% of the potential commuters indicate they would use the particular route. A sample of 70 commuters revealed that 42 would use a proposed route from Bowman Park to the downtown area. Does the Bowman-to-downtown route meet the STA criterion? Use the .05 significance level. |
| State the null and alternate hypotheses. |
| Ho:(Click to select)=0.55. |
| H1:(Click to select)=><0.55. |
| Make the decision rule.(Round your answer to 3 decimal places.) |
| Hois rejected ifz> |
| Evaluate the test statistic.(Round your answer to 3 decimal places.) |
| Test statistic |
What is the decision regarding the null hypothesis? |
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An Introduction to the Mathematics of financial Derivatives
Authors: Salih N. Neftci
2nd Edition
978-0125153928, 9780080478647, 125153929, 978-0123846822
