Answer:
We reject the null hypothesis at the significance level of 0.05.
Explanation:
vs
(upper-tail alternative)
We have
,
and n = 120. We have a large sample and our test statistic is
which is normal standard approximately. We have observed
.
We should use the significance level
. The 95th quantile of the standard normal distribution is
and the rejection region is given by {z > 1.6449}. Because the observed value 2.7386 is greater than 1.6449, we reject the null hypothesis at the significance level of 0.05.