Question

Increasing numbers of businesses are offering child-care benefits for their workers. However, one union claims that more than 85% of firms in the manufacturing sector still do not offer any child-care benefits to their workers. A random sample of 490 manufacturing firms is selected and asked if they offer child-care benefits. Suppose the P-value for this test was reported to be p = 0.1070. Use a = 0.10.

A) Hypothesis: Ho : Ha :

B) Decision about Ho based on the statistic.

C) Conclusion about the problem statement.

Answer 1

P-Value = 0.1070, = 0.10.

A)

Ho: P    0.85

Ha: P > 0.85

b)

decision rule is,

Reject Ho if (P-Value) < ( )

Here, ( P-Value = 0.1070) > ( = 0.10 )

Hence,

Null hypothesis (Ho) is NOT rejected.

c)

Therefore there is not enough sufficient evidence to support the claims that more than 85% of firms in the manufacturing sector still do not offer any child-care benefits to their workers at = 0.10