In: Statistics and Probability
A marketing manager for a cell phone company claims that more than 55% of children aged 8−12 have cell phones. In a survey of 802 children aged 8−12 by the National Consumers League, 449 of them had cell phones. Can you conclude that the manager’s claim is true? Use the α = 0.01 level of significance
Solution :
Given that,
= 0.55
1 - = 0.45
n = 802
x = 449
Level of significance = = 0.01
Point estimate = sample proportion = = x / n = 0.560
This a right (One) tailed test.
Ho: p = 0.55
Ha: p 0.55
Test statistics
z = ( - ) / *(1-) / n
= ( 0.560 - 0.55) / (0.55*0.45) /802
= 0.561
P-value = P(Z>z)
= 1 - P(Z <z )
= 1- P(Z < 0.561)
= 1 - 0.7126
= 0.2874
The p-value is p = 0.2874, and since p = 0.2874 > 0.01, it is concluded that the null hypothesis is fail to reject.
Conclusion:
It is concluded that the null hypothesis Ho is fail to reject. Therefore, there is not enough evidence to claim that the A
marketing manager for a cell phone company claims that more than 55% of children aged 8−12 have cell phones. at 0.01
level of significance.