Question: You are an HR consultant for REI, a large outdoor gear retailer. REI is considering multiple ‘family-oriented’ policy changes and would like to assess the need for daycare for their employees in the U.S.. Management tells you they estimate that 30% of employees need daycare; however they want you to determine the accuracy of this estimate. As a consultant, you identify a random sample of 400 employees and conduct a telephone interview. You find that 88 of the 400 employees in your sample indicate a need for daycare. (10 pts)

a. Calculate the 99% confidence interval for your parameter of interest based on your sample estimate (i.e., the observed statistic). (3 pts.).

b. Conduct a one-sample hypothesis test for a proportion to determine the accuracy of management’s estimate (i.e. 30%). (3 pts.).

c. In five sentences or less, tell management your result and conclusion – make sure you explain your results/conclusion in a way that will be useful to management as they move forward with policy change decisions. (4 pts.).