A survey of 1935 people who took trips revealed that 181 of them included a visit...

A survey of 1935 people who took trips revealed that 181 of them included a visit to a theme park. Based on those survey results, a management consultant claims that less than 10 % of trips include a theme park visit. Test this claim using the ?=0.01 significance level.

(a) The test statistic is

(b) The P-value is

(c) The conclusion is

A. There is not sufficient evidence to support the claim that less than 10 % of trips include a theme park visit.
B. There is sufficient evidence to support the claim that less than 10 % of trips include a theme park visit.

Expert Solution

Null hypothesis

Alternative hypothesis

We have for given example,
Population proportion value is =0.1
x=181

n=1935
Level of significance =   0.01
Estimate for sample proportion

a)

Z test statistic formula for proportion

b) P value is = 0.1718.....................by using Z table or by using Excel command NORMSDIST(-0.95)

c)

A. There is not sufficient evidence to support the claim that less than 10 % of trips include a theme park visit.

Since, P value = 0.1718 > 0.01

milcah answered 8 months ago

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