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Corporate women are still struggling to break into senior management ranks, according to a study of senior corporate executives by Korn/Ferry International, New York recruiter. Of 1,362 top executives surveyed by the firm, only 2%, or 29, were women.
Assuming that the sample reported is a random sample, use the results to test the null hypothesis that the percentage of women in top management is 5% or more, versus the alternative hypothesis that the true percentage is less than 5%.
If the test is to be carried out at α = 0.05, what will be the power of the test if the true percentage of female top executives is 4%?
If you test the null hypothesis at the 0.01 level of significance, is there evidence that the new process has reduced turnaround time? Interpret the meaning of the p-value in this problem.
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