Question

USA Today reported that about 47% of the general consumer population in the United States
is loyal to the automobile manufacturer of their choice. Suppose Chevrolet did a study of a
random sample of 1006 Chevrolet owners and found that 490 said they would buy another
Chevrolet. Does this indicate that the population proportion of consumers loyal to Chevrolet is
more than 47%? Use 1% level of significance.
a. Identify the underlying distribution and state why.
b. State the null hypothesis.
c. State the alternative hypothesis.
d. Circle one: One Tail Test / Two Tail Test.
e. State the critical value for the hypothesis test.
f. Illustrate graphically the rejection region.
g. Compute the test statistic.
h. Find the p-value for the test statistic.
i. Give the significant statement for the hypothesis test: At the ________ level of significance,
there is ______________________ evidence to reject the null hypothesis.
j. State the critical value for the estimation of the confidence interval.
k. Construct a 99% confidence interval for the true proportion of consumers who are loyal to
Chevrolet.
i. Margin of error:
ii. Confidence Interval:
l. Give the confidence statement for the confidence interval: I am _________ confident that the
true ________________________ of consumers who are loyal to Chevrolet is between
____________ and ______________.

Answer 1

Solution:

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