Providing a long-distance call allowance


Question: Eighteen per cent of multinational companies provide an allowance for personal long-distance calls for executives living overseas. Suppose a researcher thinks that multinational companies are having a more difficult time recruiting executives to live overseas and that an increasing number of these 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 hypothesis, a new study is conducted by contacting 376 multinational companies. Twenty-two per cent of these surveyed companies are providing an allowance for personal long-distance calls to executives living overseas. Does the test show enough evidence to declare that a significantly higher proportion of multinational companies provide a long-distance call allowance? Let α = .01.

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Basic Statistics: Providing a long-distance call allowance
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