Recently many companies have been experimenting with telecommuting, allowing employees to work at home on their computers. Among other things, telecommuting is supposed to reduce the number of sick days taken. Suppose that at one firm, it is known that over the past few years employees have taken a mean of 5.4 sick days. This year, the firm introduces telecommuting. Management chooses a simple random sample of 80 employees to follow in detail, and, at the end of the year, these employees average 4.5 sick days with a standard deviation of 2.7 days. Let µ represent the mean number of sick days for all employees of the firm.
a. Find the P-value for testing H0: µ ≥ 5.4 versus H1:. µ< 5.4.
b. Do you believe it is plausible that the mean number of sick days is at least 5.4, or are you convinced that it is less than 5.4? Explain your reasoning.