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CareerBuilder.com conducted a survey to learn about the proportion of employers who perform background checks when evaluating a candidate for employment ("Majority of Employers Background Check Employees...Here's Why," November \(17,\) \(2016,\) retrieved November 19,2016 ). Suppose you are interested in determining if the resulting data provide strong evidence in support of the claim that more than two-thirds of employers perform background checks. To answer this question, what null and alternative hypotheses should you test? (Hint: See Example \(10.4 .)\)

Short Answer

Expert verified
The null and alternative hypotheses for this exercise are: H0: \( p \leq \frac{2}{3} \) H1: \( p > \frac{2}{3} \)

Step by step solution

01

Define the Null Hypothesis

The null hypothesis (H0) states that the observed effect is not present. In this case, since we want to test if more than two-thirds of employers perform background checks, the null hypothesis will state that the proportion of employers conducting background checks is equal to or less than two-thirds, i.e. \(p \leq \frac{2}{3}\).
02

Define the Alternative Hypothesis

The alternative hypothesis (H1) states that the observed effect is present. In this case, we want to test if the proportion of employers performing background checks is greater than two-thirds, i.e. \(p > \frac{2}{3}\). Therefore, the null and alternative hypotheses for this exercise are: H0: \( p \leq \frac{2}{3} \) H1: \( p > \frac{2}{3} \)

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Null and Alternative Hypotheses
Understanding the null and alternative hypotheses is critical in hypothesis testing, a core concept of statistical analysis. The null hypothesis (H_0) serves as a starting point for statistical testing. It represents the position of no effect or no difference, essentially the status quo. For instance, if we were to speculate about the proportion of employers who conduct background checks, the null hypothesis would assert that this proportion is at most two-thirds, expressing that the established belief is that no more than two-thirds of employers perform these checks.

In contrast, the alternative hypothesis (H_1 or H_a) represents what the researcher is trying to demonstrate. This is a statement that contradicts the null hypothesis and is considered only when there is sufficient evidence to disprove H_0. Applied to our case about employer background checks, the alternative hypothesis contends that more than two-thirds of employers are conducting background checks. The determination to accept or reject the null hypothesis is made upon conducting a statistical test that will calculate the probability of observing our collected data under the presumption that H_0 is true.

It is essential to define these hypotheses accurately and clearly, as they form the foundation of any hypothesis testing procedure. Moreover, stating the alternative hypothesis as 'greater than' specifically calls for a one-tailed test, which directs us to look for evidence only in one direction, that the true proportion exceeds two-thirds.
Background Checks Statistics
Background checks in employment are a significant area of interest, holding economic and legal implications. The statistics gathered from surveys and studies about employer background checks help us understand current trends and practices in the job market. In our example, a survey by CareerBuilder.com provides insight into how prevalent background check procedures are among employers. When statisticians interpret these employment statistics, they carefully consider the reliability and context of the data, including the sample size, randomness, and methodology of data collection.

In the case of hypothesis testing, statistics about background checks not only inform about existing industry practices but also serve as a critical dataset for analysis. When the hypothesis is about the proportion of a certain practice, like background checks, the data is typically presented as a percentage or proportion. These figures are then scrutinized through statistical tests to determine if they significantly differ from the proposed null hypothesis, which, in our scenario, question whether more than two-thirds of employers conduct these checks on potential hires.

Interpreting background checks statistics also involves acknowledging possible biases and limitations in the data, which can influence the validity of the hypothesis test. Consequently, a critical evaluation of data sources and collection procedures becomes indispensable in any statistical analysis in fields such as human resources and employment policy.
Proportion Hypothesis Test
The proportion hypothesis test is a type of inferential statistical test designed to identify whether there is compelling evidence to believe that the true proportion of a population parameter, such as the fraction of employers conducting background checks, differs from a specified value. This test uses sample data to gauge the probability of observing the sample proportion if the null hypothesis is indeed true.

Executing a proportion hypothesis test entails several steps. Firstly, assuming our null hypothesis is that the proportion of employers conducting checks is two-thirds or less (H_0: p y 2/3), we then collect data — for instance, the proportion observed in a CareerBuilder.com survey. We subsequently calculate a test statistic, typically a z-score, to quantify how far our observed sample proportion is from the null hypothesis's claimed proportion, considering the expected variability in proportions.

If this z-score falls into a region that has been predefined as highly unlikely under the null hypothesis (usually corresponding to a significance level such as g> 0.05), we may reject H_0 in favor of the alternative hypothesis (H_1: p g> 2/3). This would indicate that the evidence suggests more than two-thirds of employers perform background checks. It's important to underscore that rejecting the null hypothesis doesn't prove the alternative hypothesis true; it merely suggests that the data is not consistent with H_0 at the designated level of significance.

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Most popular questions from this chapter

Refer to the instructions prior to Exercise \(10.90 .\) The paper "I Smoke but I Am Not a Smoker" ( Journal of American College Health [2010]: \(117-125\) ) describes a survey of 899 college students who were asked about their smoking behavior. Of the students surveyed, 268 classified themselves as nonsmokers, but said "yes" when asked later in the survey if they smoked. These students were classified as "phantom smokers" meaning that they did not view themselves as smokers even though they do smoke at times. The authors were interested in using these data to determine if there is convincing evidence that more than \(25 \%\) of college students fall into the phantom smoker category.

Occasionally, warning flares of the type contained in most automobile emergency kits fail to ignite. A consumer group wants to investigate a claim that the proportion of defective flares made by a particular manufacturer is higher than the advertised value of \(0.10 .\) A large number of flares will be tested, and the results will be used to decide between \(H_{0}: p=0.10\) and \(H_{a}: p>0.10,\) where \(p\) represents the actual proportion of defective flares made by this manufacturer. If \(H_{0}\) is rejected, charges of false advertising will be filed against the manufacturer. a. Explain why the alternative hypothesis was chosen to be \(H: p>0.10 .\) b. Complete the last two columns of the following table. (Hint: See Example 10.7 for an example of how this is done.)

The paper "Teens and Distracted Driving"" (Pew Internet \& American Life Project, 2009 ) reported that in a representative sample of 283 American teens age 16 to \(17,\) there were 74 who indicated that they had sent a text message while driving. For purposes of this exercise, assume that this sample is a random sample of 16- to 17 -year-old Americans. Do these data provide convincing evidence that more than a quarter of Americans age 16 to 17 have sent a text message while driving? Test the appropriate hypotheses using a significance level of 0.01 . (Hint: See Example 10.11 .)

Use the definition of the \(P\) -value to explain the following: a. Why \(H_{0}\) would be rejected if \(P\) -value \(=0.003\) b. Why \(H_{0}\) would not be rejected if \(P\) -value \(=0.350\)

Past experience is that when individuals are approached with a request to fill out and return a particular questionnaire in a provided stamped and addressed envelope, the response rate is \(40 \%\). An investigator believes that if the person distributing the questionnaire were stigmatized in some obvious way, potential respondents would feel sorry for the distributor and thus tend to respond at a rate higher than \(40 \%\). To test this theory, a distributor wore an eye patch. Of the 200 questionnaires distributed by this individual, 109 were returned. Does this provide evidence that the response rate in this situation is greater than the previous rate of \(40 \%\) ? State and test the appropriate hypotheses using a significance plevel of 0.05 .

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