Question

Eighteen percent of U.S.-based multinational companies provide an allowance for personal long-distance calls for executives living overseas, according to the Institute for International Human Resources and the National Foreign Trade Council. Suppose a researcher thinks that U.S.-based multinational companies are having a more difficult time recruiting executives to live overseas and that an increasing number of these companies are providing an allowance for personal long-distance calls to these executives to ease the burden of living away from home. To test this hypothesis, a new study is conducted by contacting 376 multinational companies. Twenty-two percent of these surveyed companies are providing an allowance for personal long-distance calls to executives living overseas. Does the test show enough evidence to declare that a significantly higher proportion of multinational companies provide a long-distance call allowance? Let α = .01.

Appendix A Statistical Tables

(Round your answer to 2 decimal places.)

The value of the test statistic is z = and we either

a) reject the null hypothesisfail

b) fail to reject the null hypothesis

.

Answer 1

Answer:

The value of the test statistic is z = 2.02

Given, alpha = 0.01

For this, one tailed P-value = 0.0217 (Using Z table)

P-value > 0.01, so we fail to reject the null hypothesis

b) fail to reject the null hypothesis is correct