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    Employee Drug Testing: Hypothesis Testing

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    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)? Example Answer: -2.21, 0.046, 0.0008, No

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    Solution Summary

    Hypothesis testing of given case study. Solution in attached excel file.