Question

In: Statistics and Probability

A marketing manager for a cell phone company claims that more than 55% of children aged...

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

Solutions

Expert Solution

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.


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