Explanation

For a one-sided hypothesis test with the alternative hypothesis H₁: μ > μ₀ (where μ₀ = 0%), we need to construct a one-sided confidence interval.

Given parameters:

• Sample mean (μ) = 1.2%
• Standard deviation (σ) = 0.05
• Sample size (n) = 36
• Significance level (α) = 5%
• Critical value (Z_α) = 1.645 (for one-tailed test at 5% significance level)

Calculation: The confidence interval for H₁: μ > μ₀ is constructed as: $[\mu - (Z_\alpha) \times (\sigma/\sqrt{n}), \infty)$ $= [1.2\% - (1.645) \times (0.05/\sqrt{36}), \infty)$ $= [1.2\% - (1.645) \times (0.05/6), \infty)$ $= [1.2\% - (1.645) \times 0.00833, \infty)$ $= [1.2\% - 0.0137, \infty)$ $= [-0.17\%, \infty)$

Why other options are incorrect:

• A: This is for the alternative hypothesis H₁: μ < μ₀
• C: This represents a two-sided confidence interval, not appropriate for a one-sided test
• D: This interval is not used in any standard hypothesis test formulation

The decision rule is: if the hypothesized value (0%) falls within this confidence interval, we fail to reject the null hypothesis; if it falls outside, we reject the null hypothesis in favor of the alternative.