Question: A company estimates that 50% or more of its employees take public transit to get to work. To test this hypothesis, a representative for the company randomly selected 27 employees and found that 6 of them take public transit.

(a) Based on the sample, would you reject the company’s claim of a 50% or greater of its employees use public transit? Answer through a hypothesis test, using the p-value approach.

(b) Based on the sample, what is the 99% confidence interval for p, the true proportion of public transit commuters in the company? Is this consistent with your findings in part a?