Suppose a Recent Random Sample of Employees Nationwide That Have

question 93

Multiple Choice

Suppose a recent random sample of employees nationwide that have a 401(k) retirement plan found that 18% of them had borrowed against it in the last year. A random sample of 100 employees from a local company who have a 401(k) retirement plan found that 14 had borrowed from their plan. Based on the sample results, is it possible to conclude, at the α = 0.025 level of significance, that the local company had a lower proportion of borrowers from its 401(k) retirement plan than the 18% reported nationwide?

• A) The z-critical value for this lower tailed test is z = -1.96. Because -1.5430 is greater than the z-critical value we do not reject the null hypothesis and conclude that the proportion of employees at the local
• Company who borrowed from their 401(k) retirement plan is not less than the national average.
• B) The z-critical value for this lower tailed test is z = -1.96. Because -1.0412 is greater than the z-critical value we do not reject the null hypothesis and conclude that the proportion of employees at the local
• Company who borrowed from their 401(k) retirement plan is not less than the national average.
• C) The z-critical value for this lower tailed test is z = 1.96. Because 1.5430 is less than the z-critical value we do not reject the null hypothesis and conclude that the proportion of employees at the local company
• Who borrowed from their 401(k) retirement plan is not less than the national average.
• D) The z-critical value for this lower tailed test is z = 1.96. Because 1.0412 is less than the z-critical value we do not reject the null hypothesis and conclude that the proportion of employees at the local company
• Who borrowed from their 401(k) retirement plan is not less than the national average.