Maxwell Cantor, VP of human resources of Asimov Aerospace Industries Inc., is reviewing the technical certifications of employees in different divisions of the company. His goal is having 90% of technical employees with up-to-date certifications. The north-east division typically has maintained higher rates of up-to-date certifications than the southern division. He selects a random sample of 250 employees from the north-east division and 300 from the southern division and finds out that the number of employees with up-to-date certifications are 230 in the north-east division and 265 in the southern division. Assuming $\alpha$ = 0.01, the appropriate decision is ___. A) do not reject the null hypothesis $\mu$₁ - $\mu$₂ = 0 B) do not reject the null hypothesis π₁ - π₂ = 0 C) reject the null hypothesis $\mu$₁ - $\mu$₂ = 0 D) reject the null hypothesis π₁ - π₂ = 0 E) do not reject the null hypothesis π₁ - π₂ ≥ 0

Question

Quizplus · Accepted Answer

The null hypothesis is that the proportions of employees with up-to-date certifications in both divisions are equal. The sample proportions are 230/250 = 0.92 for the north-east and 265/300 = 0.883 for the southern division. A hypothesis test would likely show no significant difference at $\alpha$ = 0.01.

Maxwell Cantor, VP of Human Resources of Asimov Aerospace Industries α\alphaα

Maxwell Cantor, VP of Human Resources of Asimov Aerospace Industries $\alpha$