Elwin Osbourne, CIO at GFS, Inc., suspects that at least 25% of e-mail messages sent by...

Elwin Osbourne, CIO at GFS, Inc., suspects that at least 25% of e-mail messages sent by GFS employees are not business related. A random sample of 300 e-mail messages was selected to test this hypothesis at the 0.01 level of significance. Fifty-four of the messages were not business related. The appropriate decision is _______.

		increase the sample size
		gather more data
		reject the null hypothesis
		fail to reject the null hypothesis
		maintain status quo

Solutions

Expert Solution

Null hypothesis

Alternative hypothesis

We have for given example,
Population proportion value is =0.25
x=54

n=300
Level of significance =   0.01
Estimate for sample proportion =54/300=0.18

Z test statistic formula for proportion

=-2.8

P value =0.0024.................by using Z table or Excel =NORMSDIST(-2.8)

P value < 0.01

reject the null hypothesis

milcah answered 8 months ago

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