Shell Oil office workers were asked which work schedule appealed most: working five 8-hour days or four 10-hour days (USA Today, September 11, 2000). Let p equal the proportion of office workers preferring the four 10-hour day schedule. Test the hypotheses Ho: p=0.50 and Ha: p ≠ 0.50 at α = 0.01. A Sample of 105 office workers showed that 67 workers preferred the four 10-hour day schedule. What is your conclusion? Is a statistically significant preference indicated between the two schedules?

1. Establish the null hypothesis (H0) and the alternate hypothesis (Ha).

2. Indicate the level of significance, and determine critical, ZCR

3. Compute the test statistic and determine the P-value.

4. Formulate a decision rule based on steps a, b, and c above.

5. Make a decision regarding the null hypothesis based on the sample information. Interpret the results of the test and state your conclusion.