In: Math
Pharmaceutical companies promote their prescription drugs using television advertising. In a survey of 75 randomly sampled television viewers, 12 indicated that they asked their physician about using a prescription drug they saw advertised on TV.
Develop a 90% confidence interval for the proportion of viewers who discussed a drug seen on TV with their physician. (Round your answers to 3 decimal places.)
Is it reasonable to conclude that 26% of the viewers discuss an advertised drug with their physician?
Given: Sample size = 75
and No. of successes = x = 12
Sample Proportion
100(1-) % CI for proportion is given by the formula,
=
= (0.090,0.230)
90% confidence interval for the proportion of viewers who discussed a drug seen on TV with their physician is (0.090,0.230).
Since, we are confident enough that the true proportion lies within (0.090,0.230), 90% of the time, it may not be reasonable to conclude that 26% of the viewers discuss an advertised drug with their physician.Further to validate,
To test H0 : p = 0.26 Vs p 0.26
Test Statistic Z =
=
= -1.974
At 10% level of significance since critical Z = 1.645
Here, = 1.974>1.645.
Hence, there is not sufficient evidence to support the null hypothesis, H0 is rejected.
We may conclude that there is not sufficient evidence to claim that 26% of the viewers discuss an advertised drug with their physician and hence might not be reasonable.