The OCR large data set gives, for each local authority in England and Wales, the percentage of employed people who worked mainly at or from home in both 2001 and 2011. A student takes a simple random sample of 25 local authorities. In 24 of them, this percentage is higher in 2011 than in 2001.
The student models the number of increases by a binomial distribution and tests whether an increase is more likely than a decrease.
State suitable hypotheses, defining the parameter used.
Carry out the test at the 1% significance level.
State one limitation of the binomial model in this context.