Top management of a large multinational corporation wants to create a culture of
ID: 3042851 • Letter: T
Question
Top management of a large multinational corporation wants to create a culture of innovativeness and change. A consultant hired to assess the company’s organizational culture finds that only 15% of employees are open to new ideas and approaches toward their work. Consequently the company conducts a program for employees in order to reinforce the new corporate philosophy. Based on data collected after the program, the finds the 95% confidence interval for the proportion of all employees open to new ideas to be 18% to 22%. What should the company conclude?
I. The null hypothesis should not be rejected.
II. There is no evidence to suggest that the program improved employees' attitudes toward innovativeness and change.
III. There is evidence that the program improved employees' attitudes toward innovativeness and change.
a-III only
II only
Both I and III
Both I and II
I only
a-III only
b-II only
c-Both I and III
d-Both I and II
e-I only
Explanation / Answer
H0: Null hypothesis: p = 0.15 (The program has not improved employees' attitude toward innovativeness and change)
HA: Alternative hypothesis: p > 0.15 ( The program has improved)
One tail - right side test
95% Confidence Interval:
18% < p < 22 %
Correct option:
c. Both I and III
EXPLANATION:
It is seen that 0.15 is not within the Confidence Interval. So, H0 is rejected.
Also, all values in the Confidence interval are > 0.15.
So,
There is evidence that the program improved employees' attitudes towards innovativeness and change.