Question

7) 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. State the conclusion of interest to the union. Use a = 0.10.

Answer 1

P value = 0.1070 > 0.10

Therefore, we fail to reject H0 at $\alpha=0.10$

We do not have sufficient evidence at $\alpha=0.10$ , to say that more than 85% of firms in the manufacturing sector still do not offer any child -care benefits to their workers.