Nationwide 13.7% of employed wage and salary workers are union members (down from 20.1% in 1983). A random sample of 300 local wage and salary workers showed that 50 belonged to a union. At α = 0.05, is there sufficient evidence to conclude that the proportion of union membership differs from 13.7%?
Perform each of the following steps.
a. State the hypotheses and identify the claim.
b. Find the critical value(s).
c. Compute the test value.
d. Make the decision.
e. Summarize the results.
Use the traditional method of hypothesis testing unless otherwise specified.