At a 1 percent level of significance, the correct decision is to: A. accept the null hypothesis. B. fail to reject the null hypothesis. C. reject the null hypothesis. D. neither reject nor fail to reject the null hypothesis.
Decision rule: reject H0 if zcomputed > zcritical. Therefore, reject the null hypothesis because the computed test statistic of 2.60 (see the answer to Part 1) exceeds the critical z-value of 2.33.
