62 the executives of carefree insurance inc feel that

62. 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. Ninety employees rate the
management as participatory. The appropriate decision is __________.
a) do not reject the null hypothesis

b) reject the null hypothesis
c) reduce the sample size
d) increase the sample size
e) maintain status quo
Ans: a
Response: See section 9.4 Testing Hypotheses about a Proportion
Difficulty: Hard
Learning Objective: 9.4: Reach a statistical conclusion in hypothesis testing problems about a
population proportion using the z statistic.
63. 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 null hypothesis is ____.
Response: See section 9.4 Testing Hypotheses about a Proportion
Difficulty: Easy
Learning Objective: 9.4: Reach a statistical conclusion in hypothesis testing problems about a
population proportion using the z statistic.
64. 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 _______.
Response: See section 9.4 Testing Hypotheses about a Proportion
Difficulty: Hard
Learning Objective: 9.4: Reach a statistical conclusion in hypothesis testing problems about a
population proportion using the z statistic.