The Society for Human Resource Management (SHRM) collaborated with Globoforce on a series of organizational surveys with the goal of identifying challenges that HR leaders face and what strategies help them conquer those challenges. A 2016 survey indicates that employee retention/turnover (46%) and employee engagement (36%) were cited as the most important organizational challenges currently faced by HR professionals. One strategy that may have an impact on employee retention, turnover and engagement is a successful employee recognition program. Surveying small organizations, those with 500 to 2,499 employees, and large organizations, those with 10,000 or more employees, SHRM and Globoforce showed that 326 (77%) of the 423 small organizations have employee retention programs as compared to 167 (87%) of the 192 large organizations.

Source: Data extracted from SHRM Survey Finding: Influencing Workplace Culture Through Employee Retention and Other Efforts, bit.ly/2rFvE9w.

a. At the 0.01 level of significance, is there evidence of a significant difference between organizations with 500 to 2,499 employees and organizations with 10,000+ employees with respect to the proportion that have employee recognition programs?

b. Find the p-value in (a) and interpret its meaning.

c. Construct and interpret a 99% confidence interval estimate for the difference between organizations with 500 to 2,499 employees and organizations with 10,000 or more employees with respect to the proportion that have employee recognition programs.