Question

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

Answer 1

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

Explanation:

Given that:

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

The null hypothesis is:

`H_o : p = 10`

The alternative hypothesis is:

`H_1 : p > 10`

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.