A large software development firm recently relocated its facilities. Top management is interested in fostering good relations with their new local community and has Encouraged their professional employees to engage in local service activities. They Believe that at least 40% or more of the employees engage in these types of activities. If This is not the case, they will institute an incentive program to increase community Involvement. The correct null and alternative hypotheses to test the belief of top Management are A) $H _ { 0 } : \mathrm { p } = 0.40 \text { and } H _ { A } : \mathrm { p } 0.40$ C) $H _ { 0 } : \mathrm { p } = 0.40 \text { and } H _ { A } : \mathrm { p } \neq 0.40$ D) $H _ { 0 } : \mathrm { p } \neq 0.40 \text { and } H _ { A } : \mathrm { p } = 0.40$ E) $H _ { 0 } : \mathrm { p } 0.40$

Question

A large software development firm recently relocated its facilities. Top management is interested in fostering good relations with their new local community and has Encouraged their professional employees to engage in local service activities. They Believe that at least 40% or more of the employees engage in these types of activities. If This is not the case, they will institute an incentive program to increase community Involvement. The correct null and alternative hypotheses to test the belief of top Management are A) $H _ { 0 } : \mathrm { p } = 0.40 \text { and } H _ { A } : \mathrm { p } < 0.40$ B) $H _ { 0 } : \mathrm { p } = 0.40 \text { and } H _ { A } : \mathrm { p } > 0.40$ C) $H _ { 0 } : \mathrm { p } = 0.40 \text { and } H _ { A } : \mathrm { p } \neq 0.40$ D) $H _ { 0 } : \mathrm { p } \neq 0.40 \text { and } H _ { A } : \mathrm { p } = 0.40$ E) $H _ { 0 } : \mathrm { p } < 0.40 \text { and } H _ { A } : \mathrm { p } > 0.40$

Quizplus · Accepted Answer

The correct null hypothesis is that the proportion of employees who engage in local service activities is equal to 0.40. The alternative hypothesis should express the belief of top management, which is that the proportion of employees who engage in local service activities is greater than 0.40. Therefore, the correct set of hypotheses is:
H0: p = 0.40
HA: p > 0.40
Option B correctly expresses this set of hypotheses.

A Large Software Development Firm Recently Relocated Its Facilities H0:p=0.40 and HA:p<0.40H _ { 0 } : \mathrm { p } = 0.40 \text { and } H _ { A } : \mathrm { p } < 0.40H0​:p=0.40 and HA​:p<0.40

A Large Software Development Firm Recently Relocated Its Facilities $H _ { 0 } : \mathrm { p } = 0.40 \text { and } H _ { A } : \mathrm { p } < 0.40$