Test an appropriate hypothesis with alpha 0.01, 0.05 and 0.10
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Test an appropriate hypothesis with alpha 0.01, 0.05 and 0.10 and state your conclusion. (State null and alternative hypothesis? Find thetest statistic? Use P-value as your decision criteria and state your conclusion with alpha levels 0.01, 0.05 ? and 0.10. )? Hypothesis H0: p = 0.4 (female executive proportion is equal to female employees proportion) H0: P < 0.4 (female executive proportion is less than to female employees proportion) Assumptions i)Executives are independent with respect to gender ii)the data collected is not random but a representative of the population iii)43 3xecutives are less than 10% of all possible executives NP = ^p=13 43= 0.302 Since NP > 10%, we use z-test for this case Test statistic Z =^p−p SD(^p) But SD(^p)=√pq n=√0.4∗0.6 43= 0.0747 Z =0.302−0.4 0.0747= -1.312 Probability P-Value = P (^p<0.302)
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= P (z< -1.312) = 0.0948 (From standard normal table). Explain what the study’s P value means in this context. Did you notice the relationship with your answer in question 1? Since the p-value (0.0948) is greater than 0.05 at alpha =0.05, the null hypothesis is not rejected hence we conclude that there is insufficient evidence to suggest that the female executives proportion is less than the female employees proportion. Since the p-value (0.0948) is greater than 0.01 at alpha =0.01, the null hypothesis is not rejected hence we conclude that there is insufficient evidence to suggest that the female executives proportion is less than the female employees proportion. Since the p-value (0.0948) is less than 0.1 at alpha =0.1, the null hypothesis is rejected hence we conclude that there is sufficient evidence to suggest that the female executives proportion is less than the female employees proportion Explain what the study’s test statistic means in this context. The test statistic (z = -1.3) is less than the z critical value at alpha of 0.05 thus null hypothesis is not rejected hence we conclude that we have insufficient evidence to suggest that female executives proportion is less than female employees proportion. Explain what the study’s level of significances mean in this context Significance level means the probability of rejecting null hypothesis when it is actually true. Which significance level would be your choice? Why? State T1 and T2 errors. ? I choose significance level of 0.05. Reason: Increasing significance level increases the error of rejecting null hypothesis. Type 1 error = 0.05