ASSIGNMENT- 2

RESEARCH METHODOLOGY

1) Calculat e m ean, st andard deviat ion, variance & coeffi cient of

Variance and com pare t he result s Cricket er A and Cricket er B. Follow ing
are t he runs m ade by t wo cricket ers in 10 innings. Which of t he cricketers is
a bet t er scorer on average? Which of t hem is m ore consist ent person?

Sl No Cricketer A Cricketer B
1 31 51
2 48 5
3 13 12
4 51 83
5 38 37
6 43 112
7 50 42
8 36 18
9 47 79
10 82 20

A n s we r :
Cricketer A :
a) μ( Mean) = (31+48+13+51+38+43+50+36+47+82)/10 = 439/10 = 43.9
❑

√
b) Standard deviation σ = ( ∑ ❑ x ❑−x)❑2 /n
❑
= (43.9-31) + (43.9-48)2 +(43.9-13)2 +(43.9-51)2 +(43.9-38)2 +(43.9-43)2 +(43.9-50)2 +
2

(43.9-47)2 +(43.9-82)2 +(43.9-36)2

= √ 2784.9/10 = 16.68

c) Variance = σ 2 = 278.49

d) Coefficient of variation: σ /μ* 100 = 16.68/43.9 * 100 = 38 %

Cricketer B :

a ¿ μ( Mean) = (51+5+12+83+37+112+42+18+79+20)/10 = 459/10 = 45.9

❑

√
b) Standard deviation σ = ( ∑ ❑ x ❑−x)❑2 /n
❑
= (45.9-51) + (45.9-5) +(45.9-12)2 +(45.9-83)2 +(45.9-37)2 +(45.9-112)2 +(45.9-42)2 +
2 2

(45.9-18)2 +(45..9-79)2 +(45.9-20)2

= √ 10162.9/ 10 = 31.88

c) Variance = σ 2 = 1016.29
d) Coefficient of variation : σ /μ* 100 = 31.88/45.9 * 100 = 69.46 %

Cricketer A is a better scorer compared to B as A has a lesser coefficient of variance than B.

2) The probabilit y t hat a bomb hit s a t arget is ½ . 4 bombs are aimed at a

bridge. 3 bombs are enough t o dest roy t he bridge. Find t he probabilit y t hat
a) t he bridge is dest royed b) none of t he bom b hit t he bridge

A n sw e r :
Let X be t he num ber of bombs hit t ing a t arget is a binomial variat e, wit h t he
param et ers 2 = 4 , p = 1 /2= 0 .5 , q = 1 -p = 1 -0 . 5 = 0 .5

Th e PM F i s

P( x ) = n cx p x q (n -x ) ; x = 0 , 1 , 2 , …. n
= 4 c x ( 0 . 5 ) x ( 0 . 5 ) 4-x ; x = 0 ,1 , 2 , 3 ,4
a) P ( t h e b r i d g e i s d e st r o y e d )

= p (x > = 3)= p (x = 3)+ p (x = 4)

= 4 C3 ( 0 . 5 ) 3 ( 0 . 5 ) 4-3 + 4 C4 ( 0 . 5 ) ( 0 . 5 )4-4

= 0.15 36 + 0.0 2 5 6 = 0.1 7 2

b) P (n on e of t h e b om b h it ) = p (x = 0)

= 4 C 0 ( 0 . 5 ) 0 ( 0 . 5 ) 4-0 = 0 . 1 2 9 6

3) If 10% of pens m anufacturing by company are defective find

probability t hat a box contains 12 pens contains a) exactly 2 defective pens
b) at least 2 defective pens

A n s we r :
Probabilit y of defect ive pens (p) = 1/10 (given)
Probabilit y of non-defect ive pens (q) = 1-p = 9/10
No. of Trials , n= 12
a) Exact ly 2 defect ive pens

P(x= 2) = 12 C2 (1/10) 2 x (9/10) 10

= (12x11x10! / 2 x 10! ) x (1/100) x (9/10) 10
= (66/100) x (9/10) 10
= 0.66 x 0.34
= 0.2244
b) At least 2 defect ive
 P(x> = 2) = 1-[ P(x= 0) + P(x= 1)]
= 1-[ 12 C0 (1/10) 0 (9/10) 12 + 12 C1 (1/10) 1 (9/10) 11 ]
= 1-[ (9/10) 12 + 12x(9) 11 /(10) 12
= 1-[ 0.376 + 0.282]
= 1-[ 0.658]
= 0.342

4) What is a hypothesis? Explain t he t erms- null hypothesis and

alternative hypotheses with suitable example? Distinguish between a
one-tail t est and a t wo-tail t est . When would you prefer a) a one-tail t est ,
and b) a t wo-tail t est ?

A n sw e r :
A research hypot hesis is a specific, clear, and t est able proposit ion or
predict ive st at em ent about t he possible out com e of a scient ific
research st udy based on a part icular propert y of a populat ion, such as
presum ed differences bet ween groups on a part icular variable or
relat ionships bet ween variables. Specifying t he research hypot heses is
one of t he m ost im port ant st eps in planning a scient ific quant it at ive
research st udy. A quant it at ive researcher usually st at es a priori
expect at ion about t he result s of t he st udy in one or m ore research
hypot heses before conduct ing t he st udy, because t he design of t he
research st udy and t he planned research design oft en is det erm ined by
t he st at ed hypot heses.
N u l l H y p o t h e si s
The null hypothesis is a general statement t hat states t hat t here is no
relat ionship between t wo phenomenon’ s under considerat ion or t hat
t here is no associat ion bet ween t wo groups.
 A hypothesis, in general, is an assumpt ion t hat is yet t o be proved wit h
sufficient pieces of evidence. A null hypot hesis t hus is t he hypot hesis
a researcher is t rying t o disprove.
 A null hypot hesis is a hypot hesis capable of being object ively
verified, t est ed, and even reject ed.
 If a st udy is t o compare method A wit h m ethod B about t heir
relationship, and if t he study is preceded on t he assumption t hat both
m ethods are equally good, t hen t his assumption is t ermed as t he null
hypothesis.
 The null hypot hesis should alw ays be a specific hypot hesis, i.e., it
should not st at e about or approxim at ely a cert ain value.

Ex a m p l e s
The follow ing are som e exam ples of null hypot hesis:-
1. If t he hypothesis is t hat “ the consumption of a particular medicine reduces
t he chances of heart arrest ” , t he null hypot hesis will be “ the
consumption of t he m edicine doesn’ t reduce t he chances of heart arrest .”

2. If t he hypot hesis is t hat , “ If random t est scores are collect ed from

m en and wom en, does t he score of one group differ from t he
other?” a possible null hypot hesis will be t hat t he mean t est score
of men is t he same as t hat of t he women.
H0: µ1= µ2
H0= null hypot hesis
µ1= m ean score of m en
µ2= m ean score of wom en

A l t e r n a t i v e H y p o t h e si s
An alt ernat ive hypot hesis is a st at em ent t hat describes t hat t here is a
relat ionship bet ween t wo select ed variables in a st udy.
 An alt ernat ive hypot hesis is usually used t o st at e t hat a new t heory
is preferable t o t he old one (null hypot hesis).
 This hypot hesis can be sim ply t erm ed as an alt ernat ive t o t he null
hypot hesis.
 The alternative hypothesis is t he hypothesis t hat is t o be proved t hat
indicates t hat t he results of a study are significant and t hat t he sample
observation is not results just from chance but from some non-random
cause
 If a study is t o compare method A wit h m ethod B about t heir
relat ionship and we assume t hat t he method A is superior or t he method
B is inferior, t hen such a statement is t ermed as an alternative
hypot hesis.
 Alt ernat ive hypot heses should be clearly st at ed, considering t he
nat ure of t he research problem .
Ex a m p l e s
The follow ing are som e exam ples of alt ernat ive hypot hesis:
1. If a researcher is assum ing t hat t he bearing capacit y of a bridge
is m ore t han 10 t ons, t hen t he hypot hesis under t his st udy will be:
Null hypot hesis H0: µ= 10 t ons
Alt ernat ive hypot hesis Ha: µ> 10 t ons

2. Under another study t hat is t rying t o t est whether t here is a

significant difference between t he effectiveness of m edicine against heart
arrest , t he alt ernat ive hypot hesis will be t hat t here is a relat
ionship bet ween t he m edicine and chances of heartarrest .
Comparison between One-tail test and a two-tail test

Basis of comparison One -tailed test Two-tailed test

Meaning A statistical hypothesis test A significance test in which
in which alternative alternative hypothesis has
hypothesis has only one end, two ends, is called two-
is known as one tailed test. tailed test.

Hypothesis Directional Non-Directional

Region of rejection Either left or right Both left & right
Determines If there is a relationship If there is a relationship
between variables in single between variables in either
direction direction
Result Greater or less than certain Greater or less than certain
value range of values
Sign in alternative > or < ≠
hypothesis
5) Explain brief about t he follow ing t est wit h suit able exam ples
a. t -t est
b. Z-t est
c. F-t est
A n s we r :
a . t -t e st

 A t -t est is a t ype of inferent ial st at ist ic used t o det ermine if t here

is a significant difference between t he m eans of t wo groups, which
may be related in certain features.
 The t -t est is one of m any t est s used for t he purpose of hypot hesis
t est ing in st at ist ics.
 Calculating a t -test requires t hree key data values. They include t he
difference between t he mean values from each data set (called t he
m ean difference), t he standard deviation of each group, and t he
number of data values of each group.
 There are several different t ypes of t -t est t hat can be perform ed
depending on t he dat a and t ype of analysis required.

Example : Measuring the average diameter of shafts from a certain machine

when there is small sample

b . Z -t e st

o Z-t est is a statistical t est t o determine w hether t w o population means are

different w hen t he variances are known, and t he sample size is large.
o Z-t est is a hypot hesis t est in w hich t he z-st at ist ic follow s a normal dist
ribut ion.
o A z-st at ist ic, or z-score, is a num ber represent ing t he result from t he z-t est .
o Z- tests are closely related to t-test, but t-test are best performed when an experiment has a
small sample size.
o Z -tests assume the standard deviation is known , while t-test assume it is unknown.

Example: Comparing the fraction defectives from 2 production lines

c. F-t e st

 The F-test is designed t o t est if t wo population variances are equal. It

does t his by comparing t he ratio of t wo variances. So, if t he variances
are equal, t he rat io of t he variances w ill be 1.
 If t he null hypothesis is t rue, t hen t he F t est -statistic given above
can be simplified (dramatically). This ratio of sample variances will
be t est st at ist ic used. If t he null hypothesis is false, t hen we will
reject t he null hypothesis t hat t he ratio was equal t o 1 and our
assumption t hat t hey were equal.
 There are several different F-t ables. Each one has a different level of
significance. So, find t he correct level of significance first , and t hen
look up t he numerator degrees of freedom and t he denominator degrees
of freedom t o find t he critical value.
 Example: Comparing the variability of bolt diameters from two machines.
6) A survey among the women was conducted in the city of Bangalore to study their
family life. The observations are noted as given below table. Use Chi-square to test the
hypothesis that relations between educations with happiness status. (Hint : table value at
5% level of significance is 3.841)

Educated/not educated details Family Life Total

Happy Unhappy
Educated 70 30 100
Not educated 60 40 100
Total 130 70 200

Answer: Here,
H0 = Education and family life are ‘independent’ in our population.
H1 = Education and family life are ‘dependent’ in our population.

In order to test the hypothesis for this problem, we need to use the Chi – square statistic and
as we have a contingency table of the size 2 x 2, we can use the Yates formula to find the
statistic.

Education Family Life

Happy Unhappy
Educated 70 (a) 30 (b)
Not educated 60 (c) 40 (d)

Yates Formula: χ2 = {N * (ad – bc – (N/2))2} / { (a + b) * (c + d) * (a + c) *(b + d) }

χ2 = (200 * (2800 – 1800 – 100)2) / (100 * 100 * 130 * 70)
χ2 = (200 * 810000) / 91000000, χ2 = 162000000 / 91000000, χ2 = 1.78

Also, the degrees of freedom (df) = (i – 1) * (j – 1) = (2 – 1) * (2 – 1) = 1 * 1 = 1

Here, our calculated χ2 value is (1.78). But, in the Chi – square distribution table, at df = 1 and
5% level of significance, the χ2 value is (3.84).

As our calculated value of χ2 is less than the table value, we accept our null hypothesis and
reject the alternate hypothesis.

∴ For the above sample, we can say that the “Education and family life are ‘independent’
in our population”.
7) A scientist wants to know if education level and marital status are related for all
people in some country. He collects data on a simple random sample of n = 300 people,
part of which are shown below. Test the hypothesis that the two categorical variables,
education level and marital status are dependent at 5% level of significance.

Middle
High PhD and
school or Bachelor's Master's Total
School higher
lower
Never
18 36 21 9 6 90
Married
Married 12 36 45 36 21 150
Divorced 6 9 9 3 3 30
Widowe
3 9 9 6 3 30
d
Total 39 90 84 54 33 300

Answer:
Here,
H0 = Marital status and Education level are ‘independent’ in our population.
H1 = Marital status and Education level are ‘dependent’ in our population
In order to test the hypothesis for this problem, we need to use the Chi – square statistic. For
that we need to find the Expected values for the above-mentioned Observed values.
These expected frequencies are calculated as,
Eij = (Oi * Oj) / n where,
- Eij is an expected frequency;
- Oi is a marginal column frequency;
- Oj is a marginal row frequency;
Oij Eij (Oij – Eij) (Oij – Eij)2 (Oij – Eij)2 / Eij
Middle school or lower 18 11.7 6.3 39.69 3.39
12 19.5 -7.5 56.25 2.88
6 3.9 2.1 4.41 1.13
3 3.9 -0.9 0.81 0.21
High School 36 27 9 81 3
36 45 -9 81 1.8
9 9 0 0 0
9 9 0 0 0
Bachelor's 21 25.2 -4.2 17.64 0.7
45 42 3 9 0.21
9 8.4 0.6 0.36 0.04
9 8.4 0.6 0.36 0.04
Master's 9 16.2 -7.2 51.84 3.2
36 27 9 81 3
3 5.4 -2.4 5.76 1.07
6 5.4 0.6 0.36 0.07
 PhD and higher 6 9.9 -3.9 15.21 1.54
21 16.5 4.5 20.25 1.23
3 3.3 -0.3 0.09 0.03
3 3.3 -0.3 0.09 0.03
Total 23.57

χ2 = Σ { (Oij – Eij)2 / Eij } χ2 = 23.57

Also, the degrees of freedom (df) = (i – 1) * (j – 1) = (5 – 1) * (4 – 1) = 4 * 3 = 12
Here, our calculated χ2 value is (23.57). But, in the Chi – square distribution table, at df = 12
and 5% level of significance, the χ2 value is (21.03).
As our calculated value of χ2 is greater than the table value, we reject our null hypothesis and
accept the alternate hypothesis.
∴ For the above sample, we can say that the “Marital status and Education level” are
‘dependent’ in our population”.

8) a) It is required to test whether those who practice yoga have average blood sugar
less than 120. A sample consisting of 17 persons who practice yoga is observed. If their
mean blood sugar is 108 and S.D is 8. What would you conclude? Also find the
confidence interval and interpret the results

Answer:
Given: µ =120; n =17, x̄ =108; s =8 α =5% (n <30 small sample test)
H0 : The average blood sugar is 120 (µ =120)
H1 : Average blood sugar is less than 120 (µ <120)
Under H0, the t-test statistic is
t= (x́ - μ) /s/√n
t= 108-120/8/√17 tcal= -6.1846
α= 0.05 and df= (n-1) = 16 and the test is one tailed therefore ttable= 1.75
since tcal< ttable, we accept H0
Conclusion: average blood sugar level is equal to 120

Confidence interval
When α= 0.05 the table value is given by tα= 1.75
̅ x́ ± tα s/√ n
x́ + tα s/√ n = 120 + 1.75(8*√ 17 ¿= 165.72
x́ - tα s/√ n = 120 - 1.75(8*√ 17 ¿=50.28

Therefore, since the population and sample mean lie within the region of these
intervals, we accept H0 .
b) The mean yearly sales of a product in a mall is 55.3. After advertising the mean
yearly sales in 17 stores is 63.8 and its SD is 6.2. Test whether the advertisement was
useful or not.

Answer :
H0 : advertisement was not successful; µ = 55.3
H1 : advertisement was successful; µ > 55.3
n= 17, x́= 63.8, SD = 6.2
t= (x́ - µ)
s/√n
t= 63.8-55.3
6.2/√ 17
tcal = 5.6526
At α = 5%, df = (n-1) = (17-1) = 16 and one tailed test.
Ttable = 1.746
Confidence interval
x́ ± tα s/√ n
x́ + tα s/√ n = 63.8 + 1.746(6.2*√ 17 ¿ = 66.42
x́ - tα s/√ n = 120 - 1.746(6.2*√ 17 ¿ = 61.17
Since tcal > tα , we reject Ho
Conclusion: Advertisement was successful

9) Tw o random sam ples were draw n from t w o norm al populat ions and
t heir values are:
A : 16,17,25,26,32,34,38,40,42
B : 14,16,24,28,32,35,37,42,43,45,47
Test whether t he t wo populations have t he same variance at 5% level of
significance.

Answer :
Given dat a:-
A : 16,17,25,26,32,34,38,40,42 n= 9
B : 14,16,24,28,32,35,37,42,43,45,47 n= 11
let ’s t ake hypothesis H0
σ12 = σ22
Ha: σ12 ≥ σ22

Calculat ion t able:-

A ( x -x ̄A) ( x -x ̄A) 2 B ( x -x ̄B) ( x -x ̄B) 2

16 -14 196 14 -19 361
17 -13 169 16 -17 289
25 -5 25 24 -9 81
26 -4 16 28 -5 25
32 2 4 32 -1 1
34 4 16 35 2 4
38 8 64 37 4 16
40 10 100 42 9 81
 42 12 144 43 10 100
45 12 144
47 14 196
27 0 734 363 12 98

X̅A = 270/9 = 30
X̅B = 363/11 = 33
F= S12 /S 22 , S22 ≥ S22 , S2 = Σ(x – x̄)2 / n-1
S22 = 734/9-1 = 734/8 = 91.75
S12 = 1298/11-1 = 1298/10 = 129.8
F= 129.8/91.75
F= 1.4147 (calculat ed f value)
V1 = 11-1 = 10
V2 = 9-1 = 8
F0.05 = 3.35 (t abulat ed value)

Calculted f vaue i s smal l e r th an t ab u la t ed f v al u e, so N ULL

hy p ot h esi s i s a cce p t ed .
H e n ce , w e ca n say t h a t t w o p o p u l a t i o n s h a v e SA M E VA RI A N CE.

Q10) Use the given data to find the minimum sample size required to estimate a
population proportion or percentage. You are the operations manager for American
Airlines and you are considering a higher fare level for passengers in aisle seats. You
want to estimate the percentage of passengers who now prefer aisle seats. How many
randomly selected air passengers must you survey? Assume that you want to be 95%
confident that the sample percentage is within 2.5 percentage points of the true
population percentage. Assume that a prior survey suggests that about 38% of air
passengers prefer an aisle seat.

Answer:

Given: C=95 % , E=2.5 % , P=38 %

P ( 1−P ) Z2 ( 1.96 )2∗0.38 ( 1−0.38 )

n= , n= , n=1449
E2 0.025

Conclusion: Nearly 1449 samples are required to fulfil the condition.

Q11) Assume that the average annual income of people in US is said to be $25450. We
want to check whether average income of people in Chicago represents the national
average.
A sample of 250 people in Chicago was taken and it was found that their average
income was $26500 with SD $2800. At 5% LOS, can you conclude that the average
income of people in Chicago is representative of US average?

Answer:
Hypothesis testing is
H0: µ= 25450 (average income of people in Chicago represent the average income of people
in US.)
H1: µ≠ 25450 (average income of people in Chicago doesn’t represent the average income of
people in US.)
Given the data
x́= 26500 , σ = 2800, n= 250
The test statistic is given by,
x́−µ 26500−25450
,
Zcal= σ , Zcal= 2800 Zcal= 5.929
√n √ 250
At 5% LOS the Ztable is said to be 1.96
Since Zcal >Ztable value we reject H0
Confidence interval,
CI= µ±Zασ x́
X1= 25450-347.09
X1= 25102
X2 = 25450+347.9
X2= 25797.09

Conclusion: average income of people in Chicago doesn’t represent the average income of

people in US. The population mean lies within the confidence interval limit but the sample
mean doesn’t lie within the region.
 Q12) A company is engaged in the packaging of a superior quality tea in jars of 500 gm
each. The company is of the view that as long as jars contain 500 gm of tea, the process
is in control. The standard deviation is 50 gm. A sample of 225 jars is taken at random
and the sample average is found to be 510 gm. Has the process gone out of control?

Answer:

H0: The process is under control. (µ = 500gm)

H1: The process is under control. (µ ≠ 500 gm)
x́−μ
z=
σ x́

510−500
z=
50/ √ 225
z=3
At 5% level of significance, The Z value for two tailed tests is ±1.96

As calculated value of Z = 3, is higher than 1.96, the null hypothesis is rejected.

Hence, we conclude that, the process is not in control.

Q13) An inventor has developed a new, energy-efficient lawn mower engine. He claims
that the engine will run continuously for 5 hours (300 minutes) on a single gallon of
regular gasoline. From his stock of 2000 engines, the inventor selects a simple random
sample of 50 engines for testing. The engines run for an average of 295 minutes, with a
standard deviation of 20 minutes. Test the null hypothesis that the mean run time is 300
minutes against the alternative hypothesis that the mean run time is not 300 minutes.
Use a 0.05 level of significance. (Assume that run times for the population of engines are
normally distributed.)

Answer: 

The solution to this problem takes four steps:

1) State the hypotheses,
2) Formulate an analysis plan,
3) Analyse sample data, and
4) Interpret results.
Null hypothesis: μ = 300
Alternative hypothesis: μ ≠ 300

Note that these hypotheses constitute a two-tailed test. The null hypothesis will be rejected if
the sample mean is too big or if it is too small.
 For this analysis, the significance level is 0.05. The test method is a one-sample t-test.
Analyse sample data. Using sample data, we compute the standard error (SE), degrees of
freedom (DF), and the t statistic test statistic (t).
SE = s / sqrt(n) = 20 / sqrt(50) = 20/7.07 = 2.83
DF = n - 1 = 50 - 1 = 49
t = (x - μ) / SE = (295 - 300)/2.83 = -1.77
Since we have a two-tailed test, the P-value is the probability that the t statistic having 49
degrees of freedom is less than -1.77 or greater than 1.77.
We use the t Distribution Calculator to find P(t < -1.77) = 0.04, and P(t > 1.77) = 0.04. Thus,
the P-value = 0.04 + 0.04 = 0.08.
Since the P-value (0.08) is greater than the significance level (0.05), we cannot reject the null
hypothesis.

Q14) A high-end computer manufacturer sets the retail cost of their computers based
in the manufacturing cost, which is $1800. However, the company thinks there are
hidden costs and that the average cost to manufacture the computers is actually much
more. The company randomly selects 40 computers from its facilities and finds that the
mean cost to produce a computer is $1950 with a standard deviation of $500. Run a
hypothesis test to see if this thought is true.

Answer:

H0: μ ≤ 1800
H1: μ > 1800
Find the test statistic using the z-score formula:

Z = 1950 – 1800 / (500/√40)

= 1.897
NOW
Choose an alpha level. No alpha is mentioned in the question, so use the
standard (0.05).
1 – 0.05 = .95
Look up that value (.95) in the middle of the z-table. The area corresponds to a z-value of
1.645. That means you would reject the null hypothesis if your test statistic is greater than
1.645.*
1.897 is greater than 1.645, so you can reject the null hypothesis.

Q15) a) A mall manager believes that his customers are equally divided between men
and women. Out of 600 sample customers there were 390men. At 5% LOS test the belief
of the mall manager is correct or not.

Answer:

Hypothesis testing
H0: π=0.5(customers aredivided equally between men and women)
H1: π ≠ 0.5 (customers are not divided equally between men and women)
Given,
p= 390/600 = 0.65
0.5∗0.5
σ π = π (1−π ) , σ π = √
√ n
Test statistic is given by
600
, σ π =0.020

p−π 0.65−0.5
Zcal= ,= , Zcal=7.5
σπ 0.020
The Ztable value at 5% LOS is ±1.96.
Since Zcal>Ztable, we reject H0.
Conclusion: customers are not divided equally into men and women.

b) The CEO of a company believes that 72% of his employees follow company rules.
To test this claim 550 samples were taken and it was found that 120 of these followed
the rules. At 1% LOS what can be concluded about the CEO.

Answer:
Hypothesis testing
H0: π=0.72(72% of employees follow company rules)
H1: π <0.72 (less than 72% of employees follow company rules)
Given,
p= 120/550 = 0.218
σ π = π (1−π ) , σ π = 0.72∗0.28 , σ π =0.019
√ n √
Test statistic is given by
550

p−π 0.218−0.72
Zcal= , = , Zcal=-26.42
σπ 0.019
The Ztable value at 1% LOS is ±2.33.
Since Zcal>Ztable, we reject H0.
Conclusion: less than 72% employees follow company rules.