Asked by Alysha Brown on Jun 27, 2024

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In April of 2011,the unemployment rate in Canada was reported to be 7.6%.You wish to know if the current unemployment rate differs from that of April 2011.You take a random sample size of 1000 and found unemployment at 6.1%.State the critical value required to perform an appropriate hypothesis test using α = 0.05.

A) 1.282
B) 1.96
C) 2.576
D) 1.645
E) 3.09

Critical Value

A cutoff point on a test statistic at or beyond which the null hypothesis is rejected in favor of the alternative hypothesis.

Hypothesis Test

A statistical method used to determine whether there is enough evidence to reject a null hypothesis in favor of an alternative hypothesis.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

  • Understand how to identify and calculate appropriate critical values for hypothesis testing.
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AM
angus mckayJul 03, 2024
Final Answer :
B
Explanation :
Since the sample size is large (n = 1000), we can use the normal distribution to perform the hypothesis test. Using a significance level of α = 0.05, the critical value for a two-tailed test can be found using a standard normal distribution table or calculator. The critical value is ±1.96, which corresponds with a 95% confidence level. So, if the calculated z-score falls outside of the range of ±1.96, we can reject the null hypothesis that the current unemployment rate is the same as that of April 2011.