A marketing organization claims that more than 10% of its employees are paid minimum wage. If a hypothesis test is performed that fails to reject the null hypothesis, how would this decision be interpreted

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21-08-2020
Mathematics

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A marketing organization claims that more than 10% of its employees are paid minimum wage. If a hypothesis test is performed that fails to reject the null hypothesis, how would this decision be interpreted

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ajeigbeibraheem ajeigbeibraheem · Answer 1 · 2020-08-21T05:11:20+02:00

Answer:

there is insufficient evidence to support the claim that more than 10% of the employees are paid minimum wage.

Step-by-step explanation:

Given that:

A marketing organization claims that more than 10% of its employees are paid minimum wage.

The null hypothesis is:

[tex]H_o : p = 10[/tex]

The alternative hypothesis is:

[tex]H_1 : p > 10[/tex]

If a hypothesis test is performed that fails to reject the null hypothesis, how would this decision be interpreted

i.e Decision Rule: fails to reject the null hypothesis

Then the interpretation of the decision is that, there is insufficient evidence to support the claim that more than 10% of the employees are paid minimum wage.