Suburban Transit Authority

QUESTION 1

The policy of the Suburban Transit authority is to add a bus route if more than 55 percent of the potential commuters indicate they would use the particular route. A sample of 70 commuters revealed that 42 would use a proposed route from Bowman Park to the downtown area. You will be testing to determine if the Bowman-to-downtown route meets the STA criterion using the .05 significance level. What is the value of your critical value?

a. 1.96

b. -1.96

c. 1.645

d. -1.645

QUESTION 2

The policy of the Suburban Transit authority is to add a bus route if more than 55 percent of the potential commuters indicate they would use the particular route. A sample of 70 commuters revealed that 42 would use a proposed route from Bowman Park to the downtown area. You will be testing to determine if the Bowman-to-downtown route meets the STA criterion using the .05 significance level. What is the value of your test statistic?

a. 60

b. 85

c. 05

d. 55

QUESTION 3

The policy of the Suburban Transit authority is to add a bus route if more than 55 percent of the potential commuters indicate they would use the particular route. A sample of 70 commuters revealed that 42 would use a proposed route from Bowman Park to the downtown area. You will be testing to determine if the Bowman-to-downtown route meets the STA criterion using the .05 significance level. What is your decision?

a. reject H1

b. do not reject Ho

c. reject Ho

d. indeterminate