According to a recent National Association of Colleges and Employers (NACE) report, 48% of college student internships

are unpaid. A recent survey of 60 college interns at a local university found that 30 had unpaid internships.

a) Use the five-step p-value approach to hypothesis testing and a 0.05 level of significance to determine whether the propor-
tion of college interns that had unpaid internships is different from 0.48.

b) Assume that the study found that 37 of the 60 college interns had unpaid internships and repeat (a). Are the conclusions the same?

Step 1: Define the hypothesis:

H0: m = .48
H1: m .48

Step 2: Collect data from a sample of n = 60. Define significance level = .05 (.05/2 = .025 Region of rejection)

Step 3: Because s is unknown, we use the t distribution and the t STAT test statistic. We assume the population is normally
distributed since the sample size is 60 (which is not too small).

Step 4: For the given sample size, n, the test statistic tSTAT follows a t distribution with n - 1 degrees of freedom: 60 - 1 = 59
From Critical Values of t Table the critical values are:

Step 5: Use the t Test for the mean (standard deviation unknown)

tSTAT = X- - m X- =
s m = 0.48
SQRT(n) s =
n = 60
degrees of freedom (n - 1) = 59
e population is normally

es of freedom: 60 - 1 = 59
 According to a recent National Association of Colleges and Employers (NACE) report, 48% of college student
internshipsare unpaid. A recent survey of 60 college interns at a local university found that 30 had unpaid internships.