Eighteen percent of U.S.-based multinational companies provide an allowance for

Question

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.

Explanation / Answer

Ho : p = 18

Ha : p > 0.18

Z = ( 0.22 - 0.18 ) / ( srqt ( 0.18 * 0.82 ) / 376 )

Z = 2.02

p value : 0.0217

since p value is greater than alpha ( 0.01 )

we fail to reject ho

conclusion

there is no sufficient evidence to declare that a significantly higher proportion of multinational companies provide a long-distance call allowance

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