Question

QUESTION 4
The Manager of a certain merchandising shop selling perfumes believes that his market share is 60%. A sample of 400 people was used to test this hypothesis. However, you disagree,counterclaiming that:
1. The merchandiser’s market share is actually not 60%.
OR
2. The merchandiser’s market share does not exceed 60%.
OR
3. The merchandiser’s market share is more than 60%.
Required

a. Formulate the NULL Hypothesis for each of the three scenarios above (1, 2 and 3).
b. Formulate the alternative hypothesis for each of the three scenarios above (1, 2 and 3).                  
c. Use a sketch or diagram (for each) of the normal curve, clearly indicating the region(s) of acceptance and rejection.         
d. If you were given that all tests were performed at 1% level of significance, determine the critical value for each of the scenarios (1, 2 and 3).     
e. If 300 out of the selected sample were found to favor the merchandiser’s perfume, calculate the test statistic for this problem.         
f. State whether you would accept or reject the null hypothesis in each of the counter claims made (1), (2) and (3).            

         

Answer 1