Question

Increasing values of businesses are offering opportunities such as child care benefits for their employees. But, one local union states that more than 80% of firms in the producing sector still don’t offer value services such as child care benefits. A randomized sample was done of 390 manufacturing firms, and they were asked if they were offered child care benefits. Assume p-value for this test is p=0.1112. Alpha=0.10

Ho:

Ha:

Test statistic:

Alpha:

P-value:

Conclusion:

Also explain the type I error and type II error for this problem.

Answer 1

Here we can use one sample proportionality test:

H0 : population proportion of firms in the producing sector which don’t offer value services such as child care benefits is   20%

H0 : population proportion of firms in the producing sector which don’t offer value services such as child care benefits is > 20%

Henec suppose

P0 : proportion of firms in the producing sector which don’t offer value services such as child care benefits

H0 : P P0

H1 : p > P0

p value =0.1112.

Alpha=0.10

Since pvalues is not less than alpha we cannot reject H0 , i.e population proportion of firms in the producing sector which don’t offer value services such as child care benefits is   20%