Question

In order to shrink its labor force, a large company (such as IBM) is considering offering an early retirement package to its employees who are over fifty-five and who have been on the payroll at least ten years. However, this plan will not be cost-effective if more than 25% of such employees choose to accept this package. A random sample of 100 eligible employees indicates that 30 of them would accept the early retirement package, if it were offered. Using a 1% level of significance, test the null hypothesis that the fraction of all eligible employers who would accept the package is no greater than 0.25, against the alternative that it is greater.

Answer 1

n. 100; x - 30 pich - 0.20 0.30 Too To test Hoi p<0.25 vs Hii p> 0.25 Test Test statistic, statistic, z pop pleb) pop 0.30 0.25 10.25 X0.75 1 100 0.05 0.0433 2 = 1.155 I z critical at - -0.01 Zcritical = 2.33 (froon 2-table) | Here 2 < 2 critical 1 :. Do not reject the null hypothesis There is insufficient evidence to Support the claim that the fraction of all eligible employers who would accept the package is greater than 0.25

MCQ 18 : OPTION (B) IS CORRECT

MCQ 19 : OPTION (B) IS CORRECT