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)p = 0.50 D)p 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)p = 0.50
D)p < 0.50
E)n > 200

Quizplus · Accepted Answer

The null hypothesis in this context is a statement about the population parameter that indicates no effect or no difference. Since the executives believe a majority (more than 50%) of employees perceive a participatory management style, the null hypothesis should reflect a scenario of no majority perception, which is best represented by p = 0.50, where p is the proportion of employees perceiving a participatory management style. Choices A, B, D, and E relate to sample size and alternative hypotheses, not the null hypothesis regarding the proportion.

The Executives of CareFree Insurance, Inc