The reasons that workers in the 25–54 year old category were displaced are listed below.
Plant closed/moved .....44.8%
Insufficient work ......25.2%
Position eliminated .......30%
A random sample of 180 displaced workers (in this age category) found that 40 lost their jobs due to their position being eliminated, 53 due to insufficient work, and the rest due to the company being closed or moving. At the 0.01 level of significance are these proportions different from those from the U.S. Department of Labor?
Follow these steps.
a. State the hypotheses and identify the claim.
b. Find the critical value(s).
c. Compute the test value.
d. Make the decision.
e. Summarize the results.
Use the traditional method of hypothesis testing unless otherwise specified.