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 null hypothesis is ___. A) n = 30 B) n = 200 C) π = 0.50 D) π 200

Question

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 null hypothesis is ___.
A) n = 30
B) n = 200
C) π = 0.50
D) π < 0.50
E) n > 200

Quizplus · Accepted Answer

The null hypothesis for this test is that the proportion of employees who perceive a participatory management style is 0.50, which represents a majority.

The Executives of CareFree Insurance Inc