In 1990, 5.8% of job applicants who were tested for drugs failed the test

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Question # 1
In 1990, 5.8% of job applicants who were tested for drugs failed the test.
A random sample of 1440 current job applicants results in 61 failures (based loosely on data from the American Management Association).

At the α = 0.01 significance level, test the below claim (i.e., that the failure rate is now lower)

HO: p = 0.058
HA: p < 0.058

a) Is this an upper tail, lower tail, or two-tail test? (5 points)

b) Are we testing means or proportions? (5 points)


c) State the rule of rejection (in terms of p-value and level of significance) (5 points)


d) Find the p-value (5 points)

 

 

e) Should you reject or not reject HO? (5 points)

 


f) Does the result suggest that fewer job applicants now use drugs? (5 points) 

    • 11 years ago
    In 1990, 5.8% of job applicants who were tested for drugs failed the test
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