Question

We believe that the percent of middle-aged men who would buy our product is 25% If we can prove it to be significantly higher than that, we can raise the price, prior to going to market and revenues will be higher. We decide to conduct a focus group to test the situation, with the following results;

      n = 200, # in favor = 70                                              

What are the test statistic and the conclusion at a 1% alpha level?

a.

p-hat = 0.35 and conclude that more than 25% would buy the product

b. T test = 0.35 and conclude that there’s insufficient evidence to prove a higher buying percentage

c. Z test = 2.325 and conclude that there’s insufficient evidence to prove a higher buying percentage

d. Z test = 3.266 and conclude that the percent that would buy is greater than 25%

e.

The standard error of the proportion is 0.030619 and conclude that there’s excessive variability in the data, sufficient to cause rejection of the null

select all that apply

Answer 1

ans-> d)