Question

A survey of 500 workers showed that 330 of them said that it was seriously unethical to monitor employee e-mail. Use a 5% significance level to test the claim that the proportion of employees who say that monitoring e-mail is seriously unethical is different from 60%. What is the DECISION?

Select one:

a. fail to reject the claim that the proportion of employees who say that monitoring e-mail is seriously unethical is equal to 60%

b. reject the claim that the proportion of employees who say that monitoring e-mail is seriously unethical is equal to 60%

c. do not accept the claim that the proportion of employees who say that monitoring e-mail is seriously unethical is equal to 60%

d. there is not enough assumptions to do a hypothesis test in this case

e. accept the claim that the proportion of employees who say that monitoring e-mail is seriously unethical is equal to 60%

Answer 1

Here' the answer to the question. Please let me know in case you've doubts.

n = 500

x = 330

p^ = x/n = 330/500 = .66

p = .60

Now, hypothesis set can be setup as below:

Ho: p = .60

Ha: p!= .60

So, the Z statistic is calculated as :

Z = (p^ - p)/sqrt(p*p'/n) = (.66-.60)/sqrt(.6*.4/330) = 2.2250

Lets use Z table to calculate the p-value which is basically P(|z|>2.2250) = 0.0261 or 2.61%. This is less than 5% and hence we can conclude that :

Answer is B.
b. reject the claim that the proportion of employees who say that monitoring e-mail is seriously unethical is equal to 60%