Elwin Osbourne, CIO at GFS, Inc., suspects that at least 25% of e-mail messages sent by GFS employees are not business related. A random sample of 300 e-mail messages was selected to test this hypothesis at the 0.01 level of significance. Fifty-four of the messages were not business related. The appropriate decision is to _______.

Select answer from the options below

maintain status quo

gather more data

reject the null hypothesis

fail to reject the null hypothesis

increase the sample size

The executives of CareFree Insurance, Inc. feel that "a majority of our employees perceive a participatory management style at CareFree." A random sample of 200 CareFree employees is selected to test this hypothesis at the 0.05 level of significance. Eighty employees rate the management as participatory. The appropriate decision is to __________.

Select answer from the options below

reduce the sample size

do nothing

fail to reject the null hypothesis

increase the sample size

reject the null hypothesis

Ophelia O'Brien, VP of Consumer Credit of American First Banks (AFB), monitors the default rate on personal loans at the AFB member banks. One of her standards is "no more than 5% of personal loans should be in default." On each Friday, the default rate is calculated for a sample of 500 personal loans. Last Friday's sample contained 38 defaulted loans. Using = 0.10, the appropriate decision is to _______.

Select answer from the options below

increase the sample size

reject the null hypothesis

do nothing

fail to reject the null hypothesis

reduce the sample size

Ophelia O'Brien, VP of Consumer Credit of American First Banks (AFB), monitors the default rate on personal loans at the AFB member banks. One of her standards is "no more than 5% of personal loans should be in default." On each Friday, the default rate is calculated for a sample of 500 personal loans. Last Friday's sample contained 30 defaulted loans. Using = 0.10, the appropriate decision is to _______.

Select answer from the options below

reject the null hypothesis

fail to reject the null hypothesis

do nothing

increase the sample size

reduce the sample size