Suppose a random sample of 110 companies taken in 2007 showed that 28 offeredhigh-deductible health insurance plans to their workers. A separate random sample of 120 firms taken in 2008 showed that 46 offeredhigh-deductible health insurance plans to their workers. Based on the sampleresults, can you conclude that there is a higher proportion of companies offeringhigh-deductible health insurance plans to their workers in 2008 than in 2007? Conduct your hypothesis test at a level of significance =0.05.

Let p1 be the population proportion from 2008, and let p2 be the population proportion from 2007. Identify the null and alternative hypotheses. Choose the correct answer below.

A.

H0: p1p2=0

HA: p1p20

B.

H0: p1p2>0

HA: p1p20

C.

H0: p1p20

HA: p1p2>0

D.

H0: p1p2<0

HA: p1p20

E.

H0: p1p20

HA: p1p2=0

F.

H0: p1p20

HA: p1p2<0

Determine the criticalvalue(s).

z Subscript alpha

z

z Subscript alpha

z

plus or minus z Subscript alpha divided by 2

z/2

negative z Subscript alpha

z

=

1.645

1.645

(Use a comma to separate answers as needed. Round to three decimal places asneeded.)

Calculate the test statistic.

z=

. 355

.355

(Round to four decimal places asneeded.)

Reach a decision. Choose the correct answer below.

A.

Reject the null hypothesis. There is sufficient evidence to conclude that there is a higher proportion of companies offeringhigh-deductible health insurance plans to their workers in 2008 than in 2007.

B.

Reject the null hypothesis. There is insufficient evidence to conclude that there is a higher proportion of companies offeringhigh-deductible health insurance plans to their workers in 2008 than in 2007.

C.

Donotreject the null hypothesis. There is sufficient evidence to conclude that there is a higher proportion of companies offeringhigh-deductible health insurance plans to their workers in 2008 than in 2007.

D.

Donotreject the null hypothesis. There is insufficient evidence to conclude that there is a higher proportion of companies offeringhigh-deductible health insurance plans to their workers in 2008 than in 2007.