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Hypothesis Testing of Population Proportion and Level of Significance

According to the National Institute for Occupational Safety and Health, job stress poses a major threat to the health of workers. A national survey of restaurant employees found that 75% said that job stress had a negative impact on their personal lives. A sample of 100 employees of a restaurant chain finds that 68 answer Yes when asked: Does job stress
have a negative impact on your personal life? Is this good reason to think that the proportion of all employees of this chain who would say Yes differs from the national proportion, p0 = 0.75? Use a 5% level of significance.

State the Null Hypothesis and the Alternative Hypothesis.

Determine the test statistic.

Determine the P-value.

Make a decision regarding the hypotheses based on the P-value and the Level of Significance.

Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.