Question A

It has always been difficult to attract plumbers to rural areas. Small-town plumbers do not have the opportunity to take time off, and the salary is low. But, the quality of life is appealing. Previous records indicate that 50% of all plumbers in areas leave after one year. The government decided to offer more incentives for doctors to stay in rural areas, for example loans and housing allowances. A few months after the program started, a random sample of rural-area plumber positions showed that 60 of 140 left after 1 year.

a) Identify n, x, and p0.

b) Check the nonskewness criteria. Is a large-sample hypothesis test about p appropriate?

c) Conduct the appropriate test to determine whether the turn over of rural plumbers has decreased. Use alpha = 0.01

d) Compute the p value associated with this test.