Answer: Reject the null hypothesis because the test statistic 2.25 falls in the rejection region of the critical value.
Step by step explaination:
H0: p = 0.40
Ha: p > 0.40
Decision rule: Reject the null hypothesis (H0) if the test statistic is greater than the critical value.
Test statistic (z) = 2.25
The test is a one-tailed test because the alternate hypothesis is expressed using the inequality greater than
Assuming a 5% significance level, the critical value is 1.645
Conclusion: Reject H0 because the test statistic 2.25 is greater than the critical value 1.645.
