Question: Suppose 250 students signed up for a Statistics class. The professor of this class has observed for several years that about 9% of the students who initially enrolled in the course withdrew before the end of the semester. A salesman suggest that the professor try a statistics software package that gets the students more involved with computers, predicting that it will cut the dropout rate. The salesman offered to let the professor use it for a semester to see if the dropout rate goes down significantly. The professor will have to pay for the software only if he chooses to continue using it. The class used the software, and only 21 students dropped out of the course.

a) Determine the P-value

b) Select the statement that best describes the conclusion at a 0.05 significance level.

i. The dropout rate as a result of the software provides sufficient evidence to conclude that the professor should purchase the software.

ii. The dropout rate as a result of the software does not provide sufficient evidence to conclude that the professor should purchase the software.