1) The employee manager believes that if the proportion of employees preferring the basic plan is greater than 17%, then that plan should be subsidized by the company. A 95% confidence interval for the proportion of employees preferring the basic plan yields (16.35%; 18.12%). Based on this interval, at the 5% level of significance what should the manager’s decision be regarding whether or not to subsidy the basic plan?
Group of answer choices ( select1)
Subsidy the plan
Do not subsidy the plan
Inconclusive. Need more information to make a decision
2) Explain your selection on the previous question.
3) Write out the null and the alternative hypotheses that the manager is testing in this example.
4) The manager is not satisfied with the accuracy of the confidence interval (16.35%; 18.12%). What are the options to increase the interval’s accuracy (at the same confidence level)? (Mark all that correspond)