Actuation Consulting conducted a global survey of product teams with the goal of better understanding the dynamics of product team performance and uncovering the practices that make these teams successful. Having a clear definition of “done” is a basic element of successful product management process. One of the survey findings was that 29.4% of organizations indicated that a collective decision by the product team established this important definition of “done.”

Source: The Study of Product Team Performance, 2016, available at bit.ly/2rAGhMT.

Suppose another study is conducted to check the validity of this result, with the goal of proving that the percentage is less than 29.4%.

a. State the null and research hypotheses.

b. A sample of 100 organizations is selected, and results show that 27 indicated that a collective decision by the product team established this important definition of “done.” Use either the six-step critical value hypothesis testing approach or the five-step p-value approach to determine at the 0.05 level of significance whether there is evidence that the percentage is less than 29.4%.