Question

An executive believes that no more than 80% of the company’s employees take all of their vacation days. When testing the executive's hypothesis (using a 1% level of significance), what is the null and alternative hypothesis? (please write out the null and alternative hypotheses below) Need work shown.

What is the Test Statistic?

What is the P- Value?

Conclusion on Null Hypothesis?

Answer 1

Null Hypothesis, Ho : mu <= 0.8

Alternate Hypothesis: Ha : mu > 0.8

For finding the Test statistic and p-value, you need the value for the proportion of employees who took all leaves (x) and the corresponding standard deviation (s), for a sample.

once you get that information,

test statistic = (x - 0.8)/s

Then, use the z table (http://www.z-table.com/) to find the p-value. For example, if the test statistic is -1.21, then the p-value is 0.1131.

for conclusion, check whether the test statistic is less than or more than 2.33. If yes, accept the hypothesis