A manager is looking at the number of sick days used byemployees in a year.
H0: the average number is 8 or below
H1: the average is over 8
We know that the standard deviation of the number of sick daysused by employees is 2, and we want to test at 10% significancelevel.
Say we took a random sample of 50 employees, and checked theirrecords, and found that the average was 8.1
The manager figures that the critical value (z-sub-0.1) is1.28.
What should be the decision?
| A. | Employees are abusing their sick days |
| | B. Reject H0 |
| | C. We have insufficient information to make a decision |
| | D. Keep H0 |
