Answer:
The decision rule for rejecting H0 is if the test statistic falls outside the region bounded by the critical values.
Explanation:
Null hypothesis: The actual percentage that do not fail is the same as the stated percentage.
Alternate hypothesis: The actual percentage that do not fail is different from the stated percentage.
Test statistic (z) = (p' - p) ÷ sqrt[p(1-p) ÷ n]
p' is sample proportion = 0.51
p is population proportion = 0.48
n = 1700
z = (0.51 - 0.48) ÷ sqrt[0.48(1-0.48) ÷ 1700] = 0.03 ÷ 0.012 = 2.5
The test is a two-tailed test. At 0.01 significance level, the critical values are -2.576 and 2.576
Decision rule:
Reject H0 (null hypothesis) if the test statistic falls outside the region bounded by the critical values -2.576 and 2.576.
