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In: Statistics and Probability

A manufacturer of orthopaedic equipment is conducting market research in the USA. The general perception is...

A manufacturer of orthopaedic equipment is conducting market research in the USA. The general perception is that specialised hospitals that have units dedicated to traumatology and rehabilitation are a large part of the market, because these hospitals tend to buy more orthopaedic equipment.

The manufacturer collected a sample and the data shows that out of a total of 501 specialised hospitals in 4 states in the USA, 270 have rehabilitation units.

  1. We wish to test if there is sufficient evidence at the 5% significance level to suggest that the majority of the specialised hospitals in the USA have rehabilitation units.

    1. What is the hypothesised value of the population parameter?

    2. Perform an appropriate hypothesis test. Use the critical value approach and show all working

  2. Comment on the manufacturer’s method of choosing a sample.

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