Answer:
The decision rule is
Reject the null hypothesis
The conclusion is
There is sufficient evidence to conclude that the population proportion of people who can correctly match a dog to their owner (out of two options) is better than just guessing
Explanation:
From the question we are told that
The sample size is n = 16
The population proportion = 0.5
The number that of students that picked out the teachers dog is k = 14
Generally the sample proportion is mathematically represented as

=>

=>

The null hypothesis is

The null hypothesis is

Generally the test statistics is mathematically represented as



Generally the p-value is mathematically represented as

From the z table the probability of Z>3 is mathematically represented as

So

Let assume the level of significance is

Generally from the value obtained we see that
Hence
The decision rule is
Reject the null hypothesis
The conclusion is
There is sufficient evidence to conclude that the population proportion of people who can correctly match a dog to their owner (out of two options) is better than just guessing