Question
An executive believes that no more than 81% of the company’s employees take all of their...
An executive believes that no more than 81% of the company’s employees take all of their vacation days. In a sample of 202 members, 139 employees took all of their vacation days. When testing the executive's hypothesis (using a 1% level of significance), what is the test statistic?
Homework Answers
Answer #1
Solution: The null and alternative hypotheses are:
Under the null hypothesis, the test statistic is:
Where:
Therefore, the test statistic is 
Now we need to find the p-value. Using the standard normal table, we have:
Since the p-value is less than the significance level 0.01, we, therefore, reject the null hypothesis and conclude there is not sufficient evidence to reject the claim that no more than 81% of the company's employees take all of their vacation days.
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