A business journal investigation of the performance and timing of corporate acquisitions discovered that in a random sample of 2,893 firms, 759 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 28%? Use a = 0.05 to make your decision. H: p#0.28 H3: p>0.28 O.C. Ho: p#0.28 H: p= 0.28 O D. Ho: p>0.28 H: ps0.28 OF. Ho: p<0.28 H3: p= 0.28 E. Ho: p=0.28 Ha: p<0.28 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.) O A. z< -1.645 O B. z> O C. z< or z> Calculate the value of the z-statistic for this test. (Round to two decimal places as needed.)

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
icon
Related questions
Topic Video
Question
**Hypothesis Testing in Corporate Acquisitions**

A business journal conducted an investigation to study the performance and timing of corporate acquisitions. The investigation focused on a random sample of 2,893 firms, out of which 759 firms announced one or more acquisitions during the year 2000. The goal is to determine whether this sample provides sufficient evidence to infer that the true percentage of all firms that announced one or more acquisitions during the year 2000 is less than 28%. The significance level (α) for this test is set at 0.05.

**Hypotheses:**
1. \[ \text{Null Hypothesis (H}_0\text{): p = 0.28} \]
2. \[ \text{Alternative Hypothesis (H}_a\text{): p < 0.28} \]

**Rejection Region:**
To determine the rejection region for this hypothesis test, we look for the critical value associated with the significance level (α = 0.05). For a left-tailed test: 

- Critical z-value = -1.645

\[ \boxed{ \text{A. } z < -1.645} \]

**Calculate the z-statistic:**
To proceed with the hypothesis test, we calculate the value of the z-statistic using the formula for sample proportions:

\[
z = \frac{\hat{p} - p_0}{\sqrt{\frac{p_0 (1 - p_0)}{n}}}
\]

where:
- \(\hat{p}\) is the sample proportion.
- \(p_0\) is the hypothesized population proportion.
- \(n\) is the sample size.

Given data:
- \[ \hat{p} = \frac{759}{2893} \approx 0.262 \]
- \[ p_0 = 0.28 \]
- \[ n = 2893 \]

Substitute these values into the formula:
\[
z = \frac{0.262 - 0.28}{\sqrt{\frac{0.28 \times (1 - 0.28)}{2893}}}
\]

Calculate the z-statistic (rounding to two decimal places as needed):
\[
z = \boxed{}
\]
Transcribed Image Text:**Hypothesis Testing in Corporate Acquisitions** A business journal conducted an investigation to study the performance and timing of corporate acquisitions. The investigation focused on a random sample of 2,893 firms, out of which 759 firms announced one or more acquisitions during the year 2000. The goal is to determine whether this sample provides sufficient evidence to infer that the true percentage of all firms that announced one or more acquisitions during the year 2000 is less than 28%. The significance level (α) for this test is set at 0.05. **Hypotheses:** 1. \[ \text{Null Hypothesis (H}_0\text{): p = 0.28} \] 2. \[ \text{Alternative Hypothesis (H}_a\text{): p < 0.28} \] **Rejection Region:** To determine the rejection region for this hypothesis test, we look for the critical value associated with the significance level (α = 0.05). For a left-tailed test: - Critical z-value = -1.645 \[ \boxed{ \text{A. } z < -1.645} \] **Calculate the z-statistic:** To proceed with the hypothesis test, we calculate the value of the z-statistic using the formula for sample proportions: \[ z = \frac{\hat{p} - p_0}{\sqrt{\frac{p_0 (1 - p_0)}{n}}} \] where: - \(\hat{p}\) is the sample proportion. - \(p_0\) is the hypothesized population proportion. - \(n\) is the sample size. Given data: - \[ \hat{p} = \frac{759}{2893} \approx 0.262 \] - \[ p_0 = 0.28 \] - \[ n = 2893 \] Substitute these values into the formula: \[ z = \frac{0.262 - 0.28}{\sqrt{\frac{0.28 \times (1 - 0.28)}{2893}}} \] Calculate the z-statistic (rounding to two decimal places as needed): \[ z = \boxed{} \]
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Hypothesis Tests and Confidence Intervals for Proportions
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman