Question

The executives of CareFree Insurance, Inc. feel that "a majority of our employees perceive a participatory management style at CareFree." A random sample of 200 CareFree employees is selected to test this hypothesis at the 0.05 level of significance. Eighty employees rate the management as participatory. The appropriate decision is __________.

Answer 1

Answer:

Step-by-step explanation:

$H_0: p = 0.5\\H_a : p >0.5$

(One tailed test at 5% significance level)

Sample size =200 and sample proportion =$\frac{80}{200} =0.40$

Std error of p = $\sqrt{\frac{pq}{n} } \\=\sqrt{\frac{0.4(0.6)}{200} } \\=0.0346$

Test statistic = p diff/std error = -2.89

p value = 0.001926

So we reject H0 and accept alternate hypothesis.