In: Statistics and Probability
The executives of a care free and insurance incorporated feel that a majority of our employees perceive a huertista batori management's thou a care free a random sample of 200 carefree employees is selected to test this hypothesis and as he were a point 05 level of significance 80 employees rate the management as participatory the appropriate decision is
Null hypothesis H0: Proportion of employees rate the management as participatory is 0.5. That is p = 0.5
Alternative hypothesis H1: Proportion of employees rate the management as participatory is greater than 0.5. That is p > 0.5
Sample proportion, = 80 / 200 = 0.4
Standard error of proportion, SE = = 0.0354
Test statistic, z = ( - p) / SE = (0.4 - 0.5) / 0.0354 = -2.82
P-value = P(z > -2.82) = 0.9976
Since, p-value is greater than 0.05 significance level, we fail to reject null hypothesis H0 and conclude that there is no strong evidence that Proportion of employees rate the management as participatory is greater than 0.5 or majority of employees rate the management as participatory.