SOLUTION: In 1990, 5.8% of job applicants who were tested for drugs failed the test. At the 0.01 level, test the claim that the failure rate is now lower if a random sample of 1,520 current

Question 72378: In 1990, 5.8% of job applicants who were tested for drugs failed the test. At the 0.01 level, test the claim that the failure rate is now lower if a random sample of 1,520 current job applicants results in 58 failures. Does the result suggest that fewer job applicants now use drugs? Give the z score to 2 decimal places to, p(hat) to three decimal places, and the corresponding value of p to 4 decimal places. Also, do you conclude that fewer use drugs (Yes or No)?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
In 1990, 5.8% of job applicants who were tested for drugs failed the test. At the 0.01 level, test the claim that the failure rate is now lower if a random sample of 1,520 current job applicants results in 58 failures. Does the result suggest that fewer job applicants now use drugs? Give the z score to 2 decimal places to, p(hat) to three decimal places, and the corresponding value of p to 4 decimal places. Also, do you conclude that fewer use drugs (Yes or No)?
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Ho: p = 0.058
H1: p < 0.058
x=58; n=1520; p-hat = 58/1520= 0.038
z(0.038) = (0.038=0.058)/sqrt[(0.058)*(0.942)/1520] = -3.34
p-value = 0.0004
Yes, few use drugs.
Cheers,
Stan H.
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