Question
In: Statistics and Probability
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 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?
Solutions
Expert Solution
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
orchestra answered 2 years agoRelated Solutions
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