Question

A recent article in the Daily Mirror newspaper reported that only one in three new college graduates are able to obtain a job. The reason stated is that there is an overabundance of college graduates and a weak economy.

A survey of 200 college graduates revealed that 80 had jobs. Using a significance level of α=0.02, conduct a hypothesis test to examine if a larger proportion of college graduates have jobs than the newspapers claim.

(a)	State the null hypothesis and the alternate hypothesis. AnswerH0: π ≤ 0.33 ; H1: π > 0.33H0:π = 0.33 ; H1: π ≠ 0.33H0: π ≥ 0.33 ; H1: π < 0.33H0: π >0.33; H1: π = 0.33

(b)	State the decision rule for 0.02 significance level. (State your answer to 2 decimal places) Reject H0 if z is > Answer

(c)	Compute the value of the test statistic. (State your answer to 2 decimal places) Test Statistic = Answer

(d) Test at the 0.02 level of significance whether the proportion of college graduates that have jobs is larger than the newspapers claim.

AnswerRejectDo not reject H₀. There is Answersufficientinsufficient evidence to conclude that a larger proportion of college graduates have jobs than the newspapers claim.

Answer 1