Question

Top management of a large multinational corporation wants to create a culture of innovativeness and change. A consultant hired to assess the company’s organizational culture finds that only 25% of employees are open to new ideas and approaches toward their work. Consequently the company conducts a program for employees in order to reinforce the new corporate philosophy. Based on data collected after the program, the finds the 95% confidence interval for the proportion of all employees open to new ideas to be 18% to 26%. What should the company conclude?

I. The null hypothesis should not be rejected.
II. There is no evidence to suggest that the program improved employees' attitudes toward innovativeness and change.
III. There is evidence that the program improved employees' attitudes toward innovativeness and change.

I only

II only

III only

Both I and II

Both I and III

Answer 1

Confidence interval is given 18% to 26%

Hypothesised value = 25%

as the confidence interval contain 25%

I. The null hypothesis should not be rejected.
II. There is no evidence to suggest that the program improved employees' attitudes toward innovativeness and change.

Both I and II