Question

A major home improvement store conducted its biggest brand recognition campaign in the company’s history. A series of new television advertisements featuring well-known entertainers and sports figures were launched. A key metric for the success of television advertisements is the proportion of viewers who “like the ads a lot”. A study of 1,189 adults who viewed the ads 230 indicated that they “like the ads a lot.” The percentage of a typical television advertisement receiving the “like the ads a lot” score is believed to be 22%. Company officials want to know if there is evidence that the series of television advertisements are as successful as the typical ad at a 0.01 level of significance.

1. Re-test the above hypothesis using the p-value and the 0.02 level of significance.
2. In which case are you more likely to have a type II error?
3. What does it mean to make such an error? (In general and in terms of the problem.)
4. What would be the consequences of making a type II error? (Respond in the context of the problem)

Answer 1

p^ = X/n = 0.1934

X = 230, n = 1189

For alpha = 0.02

since p-value = 0.027 > 0.02

we fail to reject the null hypothesis again, same as 0.01 level