The mayor of a town read an article that claimed the national unemployment rate was 8%. They suspected that the unemployment rate was lower in their town, so they took a sample of 128 residents to test H₀ : p = 0.08 versus H₁: p < 0.08, where p is the proportion of residents that are unemployed.
They found that 8 residents in the sample were unemployed. Using these results, they calculated a test statistic of z -0.73 and a P-value of approximately 0.23.
Assuming the conditions for inference were met, what is an appropriate conclusion at the a = 0.10 significance level?

A. Reject H₀. This is strong evidence that the town's unemployment rate is lower than 8%.
B. Reject H₀. This isn't enough evidence to conclude that the town's unemployment rate is lower than 8%.
C. Fail to reject H₀. This is strong evidence that the town's unemployment rate is lower than 8%.
D. Fail to reject H₀. This isn't enough evidence to conclude that the town's unemployment rate is lower than 8%.

Q&A Education