3) When the COVID 19 pandemic started and there was a lockdown order, about 57% of workers reported to actually prefer working from home. Six months later, in a survey of 160 workers 77 said they prefer working from home.
a) Based on this survey, can we conclude that the proportion of workers who actually prefer working from home has changed? Test at the 5% significance level. Be sure to clearly define the parameter of interest, the null and alternative hypotheses, report the test statistic and the p-value, state your conclusion in the context of the problem.
b) What does committing Type II Error entails in this question?
c) Calculate a 77% Confidence Interval for the current proportion of workers who prefer working at home.
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Answer-(B) A Type II error is when we fail to reject a false null hypothesis. ... The consequence here is that if the null hypothesis is true, increasing α makes it more likely that we commit a Type I error (rejecting a true null hypothesis).
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