Suppose a Recent Random Sample of Employees Nationwide That Have

question 2

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.

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Definitions:

Household Income

The combined gross income of all members of a household, which is used to determine the household's economic status.

Liberal Theories

A set of ideas in political and economic thought emphasizing freedom, democracy, and the importance of individual rights.

Black Poverty

A term referring to the disproportionately high rates of poverty among Black or African American communities.

Human Capital

The accumulation of knowledge and skills that make a worker productive.