SOLUTION: The personnel director of a large insurance company is interested in reducing the turnover rate of data processing clerks in the first year of employment. Past records indicate tha

Question 208294: The personnel director of a large insurance company is interested in reducing the turnover rate of data processing clerks in the first year of employment. Past records indicate that 25% of all new hires in this area are no longer employed at the end of one year. Extensive new training approaches are implemented for a sample of 150 new data processing clerks. At the end of a one-year period, 29 of these 150 individuals are no longer employed. At the .01 level of significance, is there evidence that the proportion of data processing clerks who have gone through the new training and are no longer employed is less than .25?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
The personnel director of a large insurance company is interested in reducing the turnover rate of data processing clerks in the first year of employment. Past records indicate that 25% of all new hires in this area are no longer employed at the end of one year. Extensive new training approaches are implemented for a sample of 150 new data processing clerks. At the end of a one-year period, 29 of these 150 individuals are no longer employed. At the .01 level of significance, is there evidence that the proportion of data processing clerks who have gone through the new training and are no longer employed is less than .25?
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Ho: p = 0.25
Ha: p < 0.25
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sample proportion = 29/150
I ran a 1-proportion z test and got the following:
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test statistic: z = 22.567
p-value: 100%
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Since the p-value is greater than 1%, Fail to reject Ho.
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Cheers,
Stan H.

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