Answer: C. At the α=0.05 significance level, they should conclude that more than 50% of adults support the tax increase.
Explanation:
Given: Null hypothesis:
Alternative hypothesis:
p-value = 0.033
If the p-value is greater than alpha (p > . 05), then we fail to reject the null hypothesis.
If α=0.01 , then p-value > α i.e. we fail to reject the null hypothesis.
Conclusion: Exactly 50% of adults support the tax increase.
If α=0.05 then p-value < α i.e. we reject the null hypothesis.
Conclusion: more than 50% of adults support the tax increase.
Thus, Correct option: C .