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) fail to reject the null hypothesis
B) reject the null hypothesis
C) reduce the sample size
D) increase the sample size
E) maintain status quo

Question

Quizplus · Accepted Answer

The null hypothesis is that the majority (more than 50%) of employees perceive a participatory management style. With 90 out of 200 employees (45%) rating the management as participatory, this is less than 50%. Therefore, we fail to reject the null hypothesis.

The Executives of CareFree Insurance,Inc