Eighteen percent of USbased multinational companies provide

Eighteen percent of U.S.-based multinational companies provide an allowance for personal long-distance calls for executives living overseas, according to the Institute for International Human Resources and the National Foreign Trade Council. Suppose a researcher thinks that U.S.-based multinational companies are having a more difficult time recruiting executives to live overseas and that an increasing number of these companies are providing an allowance for personal long-distance calls to these executives to ease the burden of living away from home. To test this hypothesis, a new study is conducted by contacting 376 multinational companies. Twenty-two percent of these surveyed companies are providing an allowance for personal long-distance calls to executives living overseas. Does the test show enough evidence to declare that a significantly higher proportion of multinational companies provide a long-distance call allowance? Let = .01.

Solution

Formulating the null and alternatuve hypotheses,          
          
Ho:   p   <=   0.18
Ha:   p   >   0.18

As we see, the hypothesized po =   0.18      

Getting the point estimate of p, p^,          
          
p^ = x / n =    0.22      
          
Getting the standard error of p^, sp,          
          
sp = sqrt[po (1 - po)/n] =    0.019812955      
          
Getting the z statistic,          
          
z = (p^ - po)/sp =    2.018881066      
          
As this is a    1   tailed test, then, getting the p value,  
          
p =    0.021749791      

significance level =    0.01      

As P > 0.01, we   FAIL TO REJECT THE NULL HYPOTHESIS.  

Thus, there is no significant evidence that a significantly higher proportion of multinational companies provide a long-distance call allowance. [CONCLUSION]