Create a Confidence Interval for the Mean Difference

question 6

Essay

Create a confidence interval for the mean difference.
-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. One of his recommendations is for the company to conduct seminars for
employees in order to disseminate and reinforce the new corporate philosophy. This is
done for a six month trial period after which its value in changing employee attitudes will
be assessed.
a. Write the null and alternative hypotheses.
b. In this context, describe the Type I error possible. How might such an error impact the company?
c. In this context, describe the Type II error possible. How might such an error impact
the company?
d. Based on data collected after the trial period, the company constructed a 95%
confidence interval for the proportion of all employees open to new ideas and approaches
toward their work. The resulting interval is 18% to 22%. What conclusion should the
company reach about the seminars? Explain.

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