A magazine is considering the launch of en online edition. The magazine plans to

Question

A magazine is considering the launch of en online edition. The magazine plans to go ahead only if it is convinced that more than 20% of current readers would subscribe. The magazine contacted a simple random sample of 400 current subscribers, and 104 of these surveyed expressed interest. What should the company do? Test appropriate hypotheses and state your conclusion. Are the assumptions and the conditions to perform a one-proportion z-test met? No Yes State the null and alternative hypotheses. Choose the correct answer below. H_O: P = 0.2 H_A: p notequalto 0.2 H: p = 0.2 H_A: p > 0.2 H_O: p = 0.2 H_A: p

Explanation / Answer

Given that,
possibile chances (x)=104
sample size(n)=400
success rate ( p )= x/n = 0.26
success probability,( po )=0.2
failure probability,( qo) = 0.8
null, Ho:p=0.2
alternate, H1: p>0.2
level of significance, = 0.05
from standard normal table,right tailed z /2 =1.64
since our test is right-tailed
reject Ho, if zo > 1.64
we use test statistic z proportion = p-po/sqrt(poqo/n)
zo=0.26-0.2/(sqrt(0.16)/400)
zo =3
| zo | =3
critical value
the value of |z | at los 0.05% is 1.64
we got |zo| =3 & | z | =1.64
make decision
hence value of | zo | > | z | and here we reject Ho
p-value: right tail - Ha : ( p > 3 ) = 0.00135
hence value of p0.05 > 0.00135,here we reject Ho
ANSWERS
---------------
yes, one proportion Z test
null, Ho:p=0.2
alternate, H1: p>0.2
test statistic: 3
critical value: 1.64
decision: reject Ho
p-value: 0.00135
option C

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.