Unit 9.docx - 1 Consider this hypothesis test H0 p1 p2 = 0...

1. Consider this hypothesis test:
H
0
: p
1
- p
2
= 0
H
a
: p
1
- p
2
< 0
Here p
1
is the population mean of Population 1 and p
2
is the population proportion of Population 2. Use
the statistics summarized from a simple random sample of each of the two populations to complete the
following: ( 12 points )
Population 1 Population 2
Sample Size ( n) 200 250
Sample proportion (pbar) 0.65 0.70
1.
a. What is the pooled estimate of p?
b. Compute the test statistic z.
c. What is the rejection rule using the critical value approach and α = 0.05?
d. Based on the rejection rule from c., what is your conclusion on the hypothesis?
e. What is the p-value?
f. Use the above data to construct a 95% confidence interval for p
1
- p
2
2. Partial responses from an employee satisfaction survey for two regions of a mid-size IT
firm were recorded in the attached BUSI1013-Two Sample Proportions.xlsx file. These
responses are a simple random sample of employee answers from the two regions to
the question: Are you planning to stay with the company one year from now (Yes or
No)? The firm wants to use this data to test the research (alternative) hypothesis that