Question: The current 401K plan at a work place is voluntary, and employees have to opt in. An HR manager believes that default enrollment of all


The current 401K plan at a work place is voluntary, and employees have to opt in. An HR manager believes that default enrollment of all employees in the 401K plan with an option to opt out leads to a higher participation rate. Let p1 be the population proportion of participation with the opt in plan (current) and let p2 be the population proportion of participation with the opt out plan (proposed). We have these hypotheses: HO: p1 2 p2, H1: p1
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