The chief of security for Mall of the Dakotas was directed to study the problem

Question

The chief of security for Mall of the Dakotas was directed to study the problem of missing goods. He selected a sample of 90 boxes that had been tampered with and ascertained that, for 60 of the boxes, the missing pants, shoes, and so on were attributed to shoplifting. For 25 other boxes, employees had stolen the goods, and for the remaining 5 boxes he blamed poor inventory control. In his report to the mall management, can he say that shoplifting is twice as likely to be the cause of the loss as compared with either employee theft or poor inventory control and that employee theft and poor inventory control are equally likely? Use the 0.05 significance level.

Explanation / Answer

Employee theft is probably higher. Its possible they are letting their buddies geting away with stealing product. Needs to keep a better eye on things.

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