3. The CEO of a large corporation claims that 60% of his employees earn a living wage (defined as at least $16.07 per hour). A labor advocacy group claims that the fraction employing a living wage is only 25%. In a random sample of 15 employees, 3 reported earning a living wage. a) If the CEO's claim is correct, what is the probability that 3 or fewer employees sampled would report earning a living wage? b) If the labor advocacy group is correct, what is the probability that 3 or fewer employees sampled would report earning a living wage? c) Whose claim is more consistent with the data?

MATLAB: An Introduction with Applications
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Author:Amos Gilat
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3. The CEO of a large corporation claims that 60% of his employees earn a living wage (defined as at
least $16.07 per hour). A labor advocacy group claims that the fraction employing a living wage is
only 25%. In a random sample of 15 employees, 3 reported earning a living wage.
a) If the CEO's claim is correct, what is the probability that 3 or fewer employees sampled would
report earning a living wage?
b) If the labor advocacy group is correct, what is the probability that 3 or fewer employees sampled
would report earning a living wage?
c) Whose claim is more consistent with the data?
Transcribed Image Text:3. The CEO of a large corporation claims that 60% of his employees earn a living wage (defined as at least $16.07 per hour). A labor advocacy group claims that the fraction employing a living wage is only 25%. In a random sample of 15 employees, 3 reported earning a living wage. a) If the CEO's claim is correct, what is the probability that 3 or fewer employees sampled would report earning a living wage? b) If the labor advocacy group is correct, what is the probability that 3 or fewer employees sampled would report earning a living wage? c) Whose claim is more consistent with the data?
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