reported in the newspaper article that “at least 20% of the present welfare recipients are ineligible and should not be receiving monthly payments.” To verify the report, you selected 400 random recipients and carefully investigated each recipient and discovered that 60 of them should not be receiving payments for one reason or another. At the 0.01 level of significance, should the report be rejected? Use the formal critical value method. Remember to show your steps (including all relevant information) and explicitly verify that all assumptions of the

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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Chapter1: Starting With Matlab
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It was reported in the newspaper article that “at least 20% of the present welfare recipients
are ineligible and should not be receiving monthly payments.” To verify the report, you
selected 400 random recipients and carefully investigated each recipient and discovered that
60 of them should not be receiving payments for one reason or another. At the 0.01 level of
significance, should the report be rejected? Use the formal critical value method.
Remember to show your steps (including all relevant information) and explicitly verify that all
assumptions of the procedure are satisfied.

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