In 1990, 5.8% of job applicants who were tested for drugs failed the test. A random sample of 1440 ...

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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 P-hat = 61/1440 = 0.042 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)

    • 5 years ago
    (a) Ho = p ≥ 0.058 and Ha: p < 0.058, so this is a lower tail test ...
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