document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1150143>Question 1150143</A>: <I><SPAN STYLE=\"word-break: break-all;\"> In 1990, 5.8% of job applicants who were tested for drugs failed the test.<BR>\n" );
document.write( "A random sample of 1640 current job applicants results in 64 failures (based loosely on<BR>\n" );
document.write( "data from the American Management Association).\r<BR>\n" );
document.write( "\n" );
document.write( "At the α = 0.01 significance level, test the below claim (i.e., that the failure rate is now<BR>\n" );
document.write( "lower)\r<BR>\n" );
document.write( "\n" );
document.write( "HO: p = 0.058<BR>\n" );
document.write( "HA: p < 0.058\r<BR>\n" );
document.write( "\n" );
document.write( "a) Is this an upper tail, lower tail, or two-tail test? (5 points)<BR>\n" );
document.write( "b) Are we testing means or proportions? (5 points)<BR>\n" );
document.write( "c) State the rule of rejection (in terms of p-value and level of significance) (5 points)<BR>\n" );
document.write( "d) Find the p-value (5 points)<BR>\n" );
document.write( "e) Should you reject or not reject HO? (5 points)<BR>\n" );
document.write( "f) Does the result suggest that fewer job applicants now use drugs? (5 points)\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #771559 by </B><A HREF=/tutors/aboutme.mpl?userid=Boreal><B>Boreal(15235)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Boreal><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Boreal><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=771559\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Lower tail test, because looking at size of the failures being below a number.\r<BR>\n" );
document.write( "\n" );
document.write( "Testing a proportion.<BR>\n" );
document.write( "reject if z<-2.33<BR>\n" );
document.write( "p-value <0.01<BR>\n" );
document.write( "test statistic is z=(phat-p)/sqrt (.058*.942/1640), where p hat is 64/1640 or 0.0390<BR>\n" );
document.write( "this is z= (0.0390-0.058)/0.00577<BR>\n" );
document.write( "z=-3.29<BR>\n" );
document.write( "Reject Ho<BR>\n" );
document.write( "p-value is 0.0005<BR>\n" );
document.write( "The results do suggest that fewer applicants are using drugs </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );