A country club wants to examine the effects of a new marketing campaign that att

Question

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!!

Explanation / Answer

Given:

When testing the hypothesis that at least 25% of the people who receive the coupons for the free membership will use the coupon

So, hypothesis are as:

H0 : p < = 0.25

Ha; p > 0.25

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