Top management of a large multinational corporation wants to create a culture of innovativeness and change. A consultant hired to assess the company's organizational culture finds that only 15% of employees are open to new ideas and approaches toward their work. One of his recommendations is for the company to conduct seminars for employees in order to disseminate and reinforce the new corporate philosophy. This is done for a six month trial period after which its value in changing employee attitudes will be assessed.
a. Write the null and alternative hypotheses.
b. In this context, describe the Type I error possible. How might such an error impact the company?
c. In this context, describe the Type II error possible. How might such an error impact the company?