In: Statistics and Probability
6) A marketing survey involves product recognition in New York and California. Of 560 New Yorkers surveyed, 195 knew the product while 195 out of 600 Californians knew the product. a. Construct a 90% confidence interval. b. At the 0.05 significance level, test the claim that the recognition rates are the same in both states.
ANSWER::
(OR)
a) Constucting the 90% confidence interval
The confidence interval is given as
Where za is critical value obtained from z-table..
From the normal distribution table we find that the critical value is 1.645.
The lower confidence bound is given as
=
==
SImilarly upper bound will be
=
==
The 90% confidence interval is given as
[ -0.02308569 , 0.06951429 ]
Rounding off we get
[ -0.0231 , 0.0695 ]
b) Test the claim
The null hypothesis is given as
vs the alternative hypothesis is given as
The pooled sample proportion is given as
= 0.3362069
The test statistic is given as
=
Now obtaining the p-value for two tailed hypothesis
Since p -value > 0.05
We failed to reject the null hypothesis.
There is suffiecient evidence to conclude that the recognition rate are the same in both states.
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