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 to __________.
A)fail to reject the null hypothesis
B)reject the null hypothesis
C)reduce the sample size
D)increase the sample size
E)do nothing

Question

Quizplus · Accepted Answer

The null hypothesis is that the majority (more than 50%) of employees perceive the management style as participatory. With 80 out of 200 employees perceiving it as participatory, only 40% do so, which is less than the majority. Therefore, we reject the null hypothesis.

The Executives of CareFree Insurance, Inc