During the Covid crisis, there were lockdowns and working-from-home, which made collecting data on unemployment more challenging. Researchers from Heriot Watt University conducted a survey of 400 individuals in the labour force to assess rise in unemployment in September 2020. The object was to find out whether the unemployment rate had risen above a benchmark proportion of 6 per cent of the labour force in Malaysia. Of the surveyed persons, 34 reported being unemployed in the week prior to the survey.

Conduct a two-tailed test of whether unemployment rate during this period was 6 per cent. Set out your null and alternative hypotheses, significance level, test statistic, assumptions and sampling distribution clearly. Conduct the test and comment on the economic significance of the findings