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A business jounal investigation of the performance and timing of corporate acqui

ID: 3054016 • Letter: A

Question

A business jounal investigation of the performance and timing of corporate acquisitions discovered that in a random sample of 2,760 firms, 697 announced one or more acquisitions during the year 2000. Does the sample provide sufficient evidence to indicate that he true percentage of all firms hat announced one or more acquisitions during the year 2000 is less than 28%? Use ? = 0.10 to make your decision. What are the hypotheses for this test? OA. Ho:p#0.28 Ha: p = 0.28 Ho:p=0.28 H: p> 0.28 Ho:p=0.28 Ha: p * 0.28 O B. Ho: p> 0.28 H: ps0.28 D. Ho: p 0.28 Ha p

Explanation / Answer

The statistical software output for this problem is:

One sample proportion summary hypothesis test:
p : Proportion of successes
H0 : p = 0.28
HA : p < 0.28

Hypothesis test results:

Hence,

Hypotheses: Option D is correct.

Rejection Region: Option A; z < -1.28

Test statistic z = -3.21

Reject; is; sufficient

Proportion Count Total Sample Prop. Std. Err. Z-Stat P-value p 697 2760 0.25253623 0.0085465477 -3.2134341 0.0007