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Eighteen per cent of multinational companies provide an allowance for personal long- distance calls for executives living overseas. Researchers want to test the claim that an increasing number of companies are providing an allowance for personal long-distance calls to these executives to ease the burden of living away from home. To test this claim, a new study is conducted by randomly sampling 376 multinational companies. Twenty two per cent of these surveyed companies are providing an allowance for personal long-distance calls to executives living overseas. The test statistic and p-value for the test is 2.02 and 2.17% respectively. Which of the following is the correct interpretation of the p-value? AIf the true proportion of multinational companies that provide an allowance for personal long-distance calls for executives living overseas is 18%, then 2.17% of the time we would expect a sample proportion at least as large as the one we actually got.selectedBIf the sample proportion of multinational companies that provide an allowance for personal long-distance calls for executives living overseas is 18%, then 2.17% of the time we would expect a sample proportion at least as small as the one we actually got.CIf the true proportion of multinational companies that provide an allowance for personal long-distance calls for executives living overseas is 18%, then 2.17% of the time we would expect a sample proportion at least as small as the one we actually got.DIf the sample proportion of multinational companies that provide an allowance for personal long-distance calls for executives living overseas is 18%, then 2.17% of the time we would expect a sample proportion at least as large as the one we actually got.SUBMIT

Question

Eighteen per cent of multinational companies provide an allowance for personal long- distance calls for executives living overseas. Researchers want to test the claim that an increasing number of companies are providing an allowance for personal long-distance calls to these executives to ease the burden of living away from home. To test this claim, a new study is conducted by randomly sampling 376 multinational companies. Twenty two per cent of these surveyed companies are providing an allowance for personal long-distance calls to executives living overseas. The test statistic and p-value for the test is 2.02 and 2.17% respectively. Which of the following is the correct interpretation of the p-value? AIf the true proportion of multinational companies that provide an allowance for personal long-distance calls for executives living overseas is 18%, then 2.17% of the time we would expect a sample proportion at least as large as the one we actually got.selectedBIf the sample proportion of multinational companies that provide an allowance for personal long-distance calls for executives living overseas is 18%, then 2.17% of the time we would expect a sample proportion at least as small as the one we actually got.CIf the true proportion of multinational companies that provide an allowance for personal long-distance calls for executives living overseas is 18%, then 2.17% of the time we would expect a sample proportion at least as small as the one we actually got.DIf the sample proportion of multinational companies that provide an allowance for personal long-distance calls for executives living overseas is 18%, then 2.17% of the time we would expect a sample proportion at least as large as the one we actually got.SUBMIT

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Solution

The correct interpretation of the p-value is: If the true proportion of multinational companies that provide an allowance for personal long-distance calls for executives living overseas is 18%, then 2.17% of the time we would expect a sample proportion at least as large as the one we actually got. So, the correct answer is A.

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