A Major Issue Facing Many States Is Whether to Legalize

Multiple Choice

A major issue facing many states is whether to legalize casino gambling. Suppose the governor of one state believes that more than 55% of the state's registered voters would favor some form of legal casino gambling. However, before backing a proposal to allow such gambling, the governor has instructed his aides to conduct a statistical test on the issue. To do this, the aides have hired a consulting firm to survey a simple random sample of 300 voters in the state. Of these 300 voters, 175 actually favored legalized gambling. Assuming that a significance level of 0.05 is used, what conclusion should the governor reach based on these sample data?

A) Since z = 1.1594 < 1.645, do not reject the null hypothesis. The sample data do not provide sufficient evidence to conclude that more than 55 percent of the
Population favor legalized gambling.
B) Since z = 2.1316 > 1.645, reject the null hypothesis. The sample data provide sufficient evidence to conclude that more than 55 percent of the population
Favor legalized gambling.
C) Since z = 1.1594 < 1.645, do not reject the null hypothesis. The sample data do not provide sufficient evidence to conclude that more than 58 percent of the
Population favor legalized gambling.
D) Since z = 2.1316 > 1.645, reject the null hypothesis. The sample data provide sufficient evidence to conclude that more than 58 percent of the population
Favor legalized gambling.