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Testing of Proportion

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A recent article in USA Today reported that a job awaits only one in three new college graduates. The major reasons given were an overabundance of college graduates and a weak economy. A survey of 200 recent graduates from your school revealed that 80 students had jobs. At the .02 significance level, can we conclude that a larger proportion of students at your school have jobs?

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Solution Summary

To test if we conclude that a larger proportion of students at school have jobs.

Solution Preview

H0: P = 1/3
H1: P> 1/3

Level of significance = 2%

Test statistic:
...

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