# A contract dispute between the National Football League and the Players Association arose regarding the retirement system.

## Question:

A contract dispute between the National Football League and the Player’s Association arose regarding the retirement system. The NFL agreed to a settlement only if it could be shown convincingly that less than 60% of the players retired with 5 years or less playing time in their careers. A random sample of 200 retired NFL players is selected with 116 having played for 5 years or less. Does the sample data provide evidence to conclude that the percentage of players retiring with 5 years or less of playing time is less than 60% (using α = .01)?

a. Formulate the null and alternative hypotheses.

b. State the level of significance.

c. Find the critical value (or values), and clearly show the rejection and non rejection regions.

d. Compute the test statistic.

e. Decide whether you can reject Ho and accept Ha or not.

f. Explain and interpret your conclusion in part e. What does this mean?

g. Find the observed p-value for the hypothesis test and interpret this value. What does this mean?

h. Does this sample data provide evidence (with α = .01), that the percentage of players retiring with 5 years or less of playing time is less than 60%?

## Step by Step Answer:

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