Answer:
The critical value is 6.314
Step-by-step explanation:
Null hypothesis: The proportion of businesses that earn a profit within the first two years of operation is 80%
Alternate hypothesis: The proportion of businesses e earn a profit within the first two years of operation is greater than 18%
The hypothesis test has one critical value because it is a one-tailed test. It is a one-tailed test because the alternate hypothesis is expressed using the inequality, greater than.
n = 2
degree of freedom = n - 1 = 2 - 1 = 1
significance level = 10%
Using the t-distribution table, critical value corresponding to 1 degree of freedom and 10% significance level is 6.314.
Answer:
To determine the critical value or values for a one-proportion z-test at the 10% significance level when the hypothesis test is left- or right-tailed, we must use the look-up table for zz0.01. Since this is a right-tailed test, our critical value is positive 1.282.
