Question

A marketing company wants to know if people are more likely to buy gas between 5 PM and 6 PM than 4 PM and 5 PM. Out of 96 cars driving by between 4 & 5, 72 stopped for gas. Out of 105 cars between 5 and 6, 90 stopped for gas. Out of 105 cars between 5 and 6, 90 stopped for gas.

Using a one sided hypothesis test with a 90% confidence level, which of the following statements is supported? Please explain why each statement is or is not supported.

1. There is not sufficient evidence that the proportion of people who stop for gas between 5 & 6 vs. 4 and 5.

2. People are more likely to stop for gas between 5 & 6

3. People should buy gas in the morning, less traffic

4. People are more likely to stop for gas between 5 & 6PM

Answer 1

from the results in r ,

1. There is not sufficient evidence that the proportion of people who stop for gas between 5 & 6 vs. 4 and 5 are same .

We support this statement ,Since p value is less than 0.1(level of significance) we fail to reject null hypothesis at 10 % level of significance.

2. People are more likely to stop for gas between 5 & 6

Since alternative hypothesis is accepted so we can support the above statement.

3. People should buy gas in the morning, less traffic.

From the results we can not support this statement but we support for the buy gas between 4-5 PM rather than 5-6PM.

4. People are more likely to stop for gas between 5 & 6PM

We support this statement . It is same as statement 2.