Question 4: A country club wants to examine the effects of a new marketing campa

Question

Question 4: A country club wants to examine the effects of a new marketing campaign that attempts to get more people within the community to become members. In many communities, when people buy a house in the area, they receive a “Welcome Wagon” gift basket containing coupons to local restaurants. The idea of the marketing campaign is to include a free two month membership to the country club in the gift basket with the hope that once “new” residents try the country club then at least a certain proportion will want to become real members. One member of the Club’s Executive Council believes that at least 25% of the people who receive the coupons for the free membership will use the coupon. When testing the hypothesis that at least 25% of the people who receive the coupons for the free membership will use the coupon, what is the null and alternative hypothesis? MUST SHOW ALL WORK AND CALCULATIONS

Explanation / Answer

The null hypothesis is H0: p >= 0.25 and the alternate hypothesis is H1: p < 0.25.

Here it is to be tested that that at least 25% of the people who receive the coupons for the free membership will use the coupon, thus consider the null hypothesis that the population proportion is greater than or equal to 0.25.

Thanks.

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