Question

 

A publisher reports that 29% of their readers own a particular make of car. A marketing executive wants to test the claim that the percentage is actually different from the reported percentage. A random sample of 250 found that 26% of the readers owned a particular make of car. Is there sufficient evidence at the 0.01 level to support the executive's claim?

Answer 1

Null hypothesis      

               
                      
Alternative hypothesis  

                   
                      
We have for given example,                      
Population proportion value is =0.29                  
x=65                  
                      
n=250                  
Level of significance =   0.01                  
Estimate for sample proportion
                      
Z test statistic formula for proportion


=-1.05          

P value is =0.2938

P value is =0.2938 > 0.01

Therefore, we fail to reject H0 at

Conclusion: We do not have sufficient evidence at to  support the executive's claim