The Institute of Education Sciences Measures the High School Dropout

Multiple Choice

The Institute of Education Sciences measures the high school dropout rate as the percentage of 16- through 24-year-olds who are not enrolled in school and have not earned a high school credential. Last year, the high school dropout rate was 8.1%. A polling company recently took a survey of 1,000 people between the ages of 16 and 24 and found that 6.5% of them are high school dropouts. The polling company would like to determine whether the dropout rate has decreased. At a 5% significance level, the decision is to ________.

A) reject H₀; we can conclude that the high school dropout rate has decreased
B) reject H₀; we cannot conclude that the high school dropout rate has decreased
C) do not reject H₀; we can conclude that the high school dropout rate has decreased
D) do not reject H₀; we cannot conclude that the high school dropout rate has decreased