Question

A pharmaceutical company conducted a survey in 2009 and found out that 10% of their employees would leave the company for another one even if they paid the same. Next year, in order to better the company's retention rate, they conducted another survey in which 150 employees participated . Out of these 150 , 11 employees said they would leave for another company even if they paid the same. With a 5% risk , would you consider that the measures were effective? Indicate what error you might be making when concluding in the hypothesis proof.

Answer 1

H0: Null Hypothesis: P 0.10

HA: Alternative Hypothesis: P < 0.10 (Claim)

n = sample size = 150

p = sample proportion = 11/150 = 0.0733

P = Population proportion = 0.10

Q = 1 - P = 0.9

SE =

Test statistic is:

Z = (p - P)/SE

= (0.0733 - 0.1)/0.0245 = - 1.0898

= 0.05

One tail - Left side test

From Table, critical value of Z = - 1.64

Since the calculated value of Z = - 1.0898 is greater than critical value of Z = - 1.64, Fail to reject H0.

Conclusion.

The data do not support the claim that the measures were effective.

Sine in this case we are failing to reject null hypothesis, we might be making Type II Error (Failing to reject a false null hypothesis)