Santa Claus and North Pole Inc. currently receive a generous tax credit from the US Government, provided that at least 74% of American children believe in Santa Claus. The IRS is auditing the company, and believes that perhaps fewer than 74% of American children currently believe in Santa Claus (and thus, the company should no longer qualify for the tax credit). The auditor is conducting a hypothesis test at the α=0.05α=0.05 level of significance to determine whether or not they should qualify for the credit. Which would be correct hypotheses for this test? H0:p=0.74H0:p=0.74, H1:p≠0.74H1:p≠0.74
Santa Claus and North Pole Inc. currently receive a generous tax credit from the US Government, provided that at least 74% of American children believe in Santa Claus. The IRS is auditing the company, and believes that perhaps fewer than 74% of American children currently believe in Santa Claus (and thus, the company should no longer qualify for the tax credit). The auditor is conducting a hypothesis test at the α=0.05α=0.05 level of significance to determine whether or not they should qualify for the credit.
Which would be correct hypotheses for this test?
- H0:p=0.74H0:p=0.74, H1:p≠0.74H1:p≠0.74
- H0:p=0.74H0:p=0.74, H1:p>0.74H1:p>0.74
- H0:p<0.74H0:p<0.74, H1:p=0.74H1:p=0.74
- H0:p=0.74H0:p=0.74, H1:p<0.74H1:p<0.74
- H0:p≠0.74H0:p≠0.74, H1:p=0.74H1:p=0.74
A random sample of 103 children resulted in 34 that said they currently believed in Santa Claus.
Find the test statistic (2 decimals):
Give the P-value (4 decimals - if less than 0.001, answer 0):
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