Elwin Osbourne, CIO at GFS, Inc., suspects that at least 25% of e-mail messages sent by GFS employees are not business related.A random sample of 300 e-mail messages was selected to test this hypothesis at the 0.01 level of significance.Sixty of the messages were not business related.The appropriate decision is to _______.
A)increase the sample size
B)gather more data
C)maintain status quo
D)fail to reject the null hypothesis
E)reject the null hypothesis

Question

Quizplus · Accepted Answer

The null hypothesis in this scenario is that 25% or fewer of the e-mail messages are not business related. With 60 out of 300 messages being not business related, this represents 20% of the sample, which does not exceed the hypothesized proportion of 25%. At the 0.01 level of significance, without conducting the actual hypothesis test calculations here, the information given suggests that there is not enough evidence to conclude that more than 25% of the emails are not business related. Therefore, we fail to reject the null hypothesis.