Question

The chief of security for the Mall of the Dakotas directed a study of theft. He selected a sample of 120 boxes that had been tampered with and ascertained that, for 65 of the boxes, the missing pants, shoes, and so on were attributed to shoplifting. For 30 boxes, employees had stolen the goods, and for the remaining 25 boxes, he blamed poor inventory control. In his report to the mall management, can he say that shoplifting is twice as likely to be the cause of the loss as compared with either employee theft or poor inventory control and that employee theft and poor inventory control are equally likely? Use the 0.01 significance level.

H₀: The proportions are as stated.      H₁: The proportions are not as stated.

Answer 1