P-value and level of significance

Reference no: EM1388202

In 1990, 5.8% of job applicants who were tested for drugs failed the test.

A random sample of 1440 current job applicants results in 61 failures (based loosely on data from the American Management Association).

At the α = 0.01 significance level, test the below claim (i.e., that the failure rate is now lower)

HO: p = 0.058
HA: p < 0.058

State the rule of rejection (in terms of p-value and level of significance)

Find the p-value

Should you reject or not reject HO?

Does the result suggest that fewer job applicants now use drugs?

Reference no: EM1388202

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