Step 1: State the null hypothesis and the alternate hypothesis.

Step 2: Select the level of significance.

Step 3: Evaluate the test statistic.

Step 4: Formulate a decision rule with critical value of test statistic.

Step 5: Compare the test statistic to the critical value and make the decision about H0.

The administration of UMUC is concerned that a significant number of their students are not graduating in 4 years. One factor that may contribute to the low graduation rate after 4 years could be the number of students that change their majors after the first year at UMUC. A nationwide study found that about 49% of first year students at any university change their major after the first year. UMUC sampled 100 students and found that 51 had changed their major after their first year. At the .05 level, is the proportion of students at UMUC that change their major higher than 49%?