Question

In: Statistics and Probability

To attract a higher income from commercials, a new morning soap opera must guarantee advertising agencies...

To attract a higher income from commercials, a new morning soap opera must guarantee advertising agencies that at least 20% of the tele-audience will watch the program. The producers of the new soap opera hired a marketing company to conduct an investigation among 2,000 people in the teleauditorio. Of the 2,000 people, 300 watch the soap opera at least once a week. At the 0.05 level of significance, can it be said that 20% of the audience watches the soap opera? Or, is this sample proportion close enough to the necessary

Solutions

Expert Solution

Given that,
possible chances (x)=300
sample size(n)=2000
success rate ( p )= x/n = 0.15
success probability,( po )=0.2
failure probability,( qo) = 0.8
null, Ho:p=0.2
alternate, H1: p!=0.2
level of significance, α = 0.05
from standard normal table, two tailed z α/2 =1.96
since our test is two-tailed
reject Ho, if zo < -1.96 OR if zo > 1.96
we use test statistic z proportion = p-po/sqrt(poqo/n)
zo=0.15-0.2/(sqrt(0.16)/2000)
zo =-5.59
| zo | =5.59
critical value
the value of |z α| at los 0.05% is 1.96
we got |zo| =5.59 & | z α | =1.96
make decision
hence value of | zo | > | z α| and here we reject Ho
p-value: two tailed ( double the one tail ) - Ha : ( p != -5.59017 ) = 0
hence value of p0.05 > 0,here we reject Ho
ANSWERS
---------------
null, Ho:p=0.2
alternate, H1: p!=0.2
test statistic: -5.59
critical value: -1.96 , 1.96
decision: reject Ho
p-value: 0
we have enough evidence to support the claim that 20% of the audience watches the soap opera


Related Solutions

Advertising expenses are usually wasteful, with no guarantee of enhanced sales or higher loyalty from the...
Advertising expenses are usually wasteful, with no guarantee of enhanced sales or higher loyalty from the target audience. Do you agree with the statement? If yes, give logic and present your view point. Also discuss the difference between consumer markets and business market? Also differentiate the three types of buying situations during the purchase decisions. Discuss the difference between penetration and skimming pricing strategy with the reference of manufacturing and services firm.
Explain how the SS+K advertising agency seems to differ from other advertising agencies with respect to...
Explain how the SS+K advertising agency seems to differ from other advertising agencies with respect to communications and media focus.
FOR DEVELOPING COUNTRIES, GROWTH DOES NOT GUARANTEE POVERTY REDUCTION; WHILE HIGHER INCOME IS CLEARLY ASSOCIATED WITH...
FOR DEVELOPING COUNTRIES, GROWTH DOES NOT GUARANTEE POVERTY REDUCTION; WHILE HIGHER INCOME IS CLEARLY ASSOCIATED WITH LESS POVERTY, ECONOMIES CAN EVEN REACH UPPER MIDDLE-INCOME STATUS BUT CONTINUE TO STRUGGLE WITH LESS POVERTY, ECONOMIES CAN EVEN REACH UPPER MIDDLE-INCOME STATUS BUT CONTINUE TO STRUGGLE WITH A QUITE HIGH INCIDENCE OF EXTREME POVERTY. WHAT DOES IT RELATE TO ON THE IMPORTANCE OF THE CHARACTER OF A NATION'S GROWTH PROCESS AND ITS INSTITUTIONAL STRUCTURE?
What type of adjustments must advertising agencies make as more companies want “one sight, one sound,...
What type of adjustments must advertising agencies make as more companies want “one sight, one sound, one sell” campaigns?  Use examples.
The city of Hamiltown decides to build a new basketball stadium to attract the team from...
The city of Hamiltown decides to build a new basketball stadium to attract the team from Jacksondale (NB: this is almost always a bad decision for cities as extensive research on the local economic effects of sporting events has shown). One economic adviser suggests that the stadium should be financed by a 2 year sales tax of 10%, while another adviser recommends that the stadium be financed by a 20 year sales tax of 1%. Assume the interest rate is...
Life assurance companies offer contracts from time to time which guarantee income to the policyholder. The...
Life assurance companies offer contracts from time to time which guarantee income to the policyholder. The attraction of these products and the rate offered at any time             vary too. There are useful vehicles for investment of lump sum. Review the various options available in the marketplace.                  
Suppose at 11am this morning, the following rates are obtained from the FX markets: In New...
Suppose at 11am this morning, the following rates are obtained from the FX markets: In New York €1 =$1.09251 In Frankfurt £1 = €1.1234 In London $1 = £0.85 Determine if there is a currency arbitrage opportunity in this 3-currency situation. If there is an arbitrage opportunity to be exploited, show how you may be able to capture this profit. YOU NEED TO ILLUSTRATE YOUR PROFITABLE ROAD MAP WITH A NUMERICAL EXAMPLE.
An insurance company hires its new staff from three agencies, A, B and C, in the...
An insurance company hires its new staff from three agencies, A, B and C, in the ratio 6:1:3. Its staff records show that 12% of recruits from Agency A, 15% of recruits from Agency B and 20% of recruits from Agency C have been judged “unsatisfactory” at the end of their first year. (a) What is the probability that a randomly selected recruit is judged “unsatisfactory”? (b) The company has just assessed a random sample of 15 recruits from a...
BP Cola Must Decide How Much Money To Allocate For New Soda And Traditional Soda Advertising...
BP Cola Must Decide How Much Money To Allocate For New Soda And Traditional Soda Advertising ... Question: BP Cola must decide how much money to allocate for new soda and traditional soda advertising over... BP Cola must decide how much money to allocate for new soda and traditional soda advertising over the coming year. The advertising budget is $10,000,000. Because BP wants to push its new sodas, at least one-half of the advertising budget is to be devoted to...
What are five new insights you have regarding collaborations with personnel from community agencies that meet...
What are five new insights you have regarding collaborations with personnel from community agencies that meet the needs of students with exceptionalities and their families?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT