Problem

Nationwide $12.9 \%$ of employed wage and salary workers are union members. At random sample of 500 . local wage and salary workers showed that 75 belonged to a union. At 0.01 level of significance, is there sufficient evidence to conclude that the proportion of union members is greater than $12.9 \%$ ?

Complete the following steps:
Step \# 1: Write the null hypothesis $H_{0}$ [ Select] $\quad \hat{\approx}$ and the alternative hypothesis $H_{1} \quad$ [ Select] $\quad \hat{v}$ and identify the claim [Select]

Step \# 2: Indicate what type of test has to be used [Select] $\quad \hat{v}$ and find the critical value(s). [ Select ]

Step \# 3: Find the test value. [ Select]

Step \# 4: Make the decision about the null hypothesis. [Select]

Step \# 5: Summarize the result. [ Select]

Answer

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Answer

Step # 5: There is not sufficient evidence at the 0.01 level of significance to conclude that the proportion of union members is greater than $12.9 \%$. Therefore, the final answer is \(\boxed{\text{There is not sufficient evidence at the 0.01 level of significance to conclude that the proportion of union members is greater than 12.9\%.}}\)

Steps

Step 1 :Step # 1: The null hypothesis $H_{0}$ is that the population proportion is equal to $12.9 \%$ ($p = 0.129$), and the alternative hypothesis $H_{1}$ is that the population proportion is greater than $12.9 \%$ ($p > 0.129$). The claim is that the proportion of union members is greater than $12.9 \%$.

Step 2 :Step # 2: This is a one-tailed Z test for population proportion. The critical value for a one-tailed test with a significance level of 0.01 is approximately 2.33.

Step 3 :Step # 3: The sample proportion $\hat{p}$ is calculated as $75 / 500 = 0.15$. The test statistic is calculated as $(\hat{p} - p) / \sqrt{(p * (1 - p)) / n} = 1.40$.

Step 4 :Step # 4: Since the test statistic (1.40) is less than the critical value (2.33), we do not reject the null hypothesis.

Step 5 :Step # 5: There is not sufficient evidence at the 0.01 level of significance to conclude that the proportion of union members is greater than $12.9 \%$. Therefore, the final answer is \(\boxed{\text{There is not sufficient evidence at the 0.01 level of significance to conclude that the proportion of union members is greater than 12.9\%.}}\)

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