A business journal investigation of the performance and timing of corporate acqu

Question

A business journal investigation of the performance and timing of corporate acquisitions discovered that in a random sample of 2,622 firms, 755 announced one or more acquisitions during the year 2000. Does the sample provide sufficient evidence to indicate that the true percentage of all firms that announced one or more acquisitions during the year 2000 is less than 32%? Use =0.05 to make your decision.

What is the rejection region? Select the correct choice below and fill in the answer box(es) to complete your choice. (Round to three decimal places as needed.)

a. Z> ________

b. Z< ________

c. Z<_____ or Z>_____

Calculate the value of the z-statistice for the test?

Explanation / Answer

as it is left tailed test :

option b)rejection region z<-1.645

std error =(p(1-p)/n)1/2 ; where p=0.32 and n=2622

=0.009

phat=755/2622 =0.2879

hence test stat z=(phat-p)/std error=(0.2879-0.32)/0.009 =-3.5184

as z stat is in rejection region we can reject null hypothesis and conclude that the true percentage of all firms that announced one or more acquisitions during the year 2000 is less than 32%

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.