Question

You may need to use the appropriate appendix table or technology to answer this question.

Eagle Outfitters is a chain of stores specializing in outdoor apparel and camping gear. They are considering a promotion that involves mailing discount coupons to all their credit card customers. This promotion will be considered a success if more than 10% of those receiving the coupons use them. Before going national with the promotion, coupons were sent to a sample of 100 credit card customers.

(a) Develop hypotheses that can be used to test whether the population proportion of those who will use the coupons is sufficient to go national.

H0: p ≥ 0.10 Ha: p < 0.10 H0: p < 0.10 Ha: p ≥ 0.10 H0: p ≤ 0.10 Ha: p > 0.10 H0: p = 0.10 Ha: p ≠ 0.10 H0: p > 0.10 Ha: p ≤ 0.10

(b) The file Eagle contains the sample data.

Used Coupon?

No No No Yes No No Yes No No No No No No No No No No No No No No No No No Yes No No Yes No No No No No No No No Yes No No No No No No No No No No No No Yes Yes No Yes No No No No No No No No No No No No No No No Yes No No No No Yes No No No No No No No No No No No No No No No No Yes No Yes Yes No No No No No No

Develop a point estimate of the population proportion.

(c) Use α = 0.05 to conduct your hypothesis test. Should Eagle go national with the promotion?

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to four decimal places.)

what is your conclusion?

a. Reject H0. There is insufficient evidence to conclude that Eagle should go national with the promotion.

b. Reject H0. There is sufficient evidence to conclude that Eagle should go national with the promotion.

c. Do not reject H0. There is sufficient evidence to conclude that Eagle should go national with the promotion.

d. Do not reject H0. There is insufficient evidence to conclude that Eagle should go national with the promotion.

Answer 1

Z table as follows: