The National Restaurant Association (NRA) reported that at least 50% of r than a

Question

The National Restaurant Association (NRA) reported that at least 50% of r than average sales this Memorial Weekend. Economists believe the percentage is less than 50%. To determine the validity of the rants nationwide revealed 1,275 experienced lower than average sales this Memorial Weekend a. a. At the significance level of alpha = 0.03, does the evidence suggest the economists are right? Clearly show five steps of hypothesis testing. Are all the requirements of this test met? Explain. b. What is the confidence level? c. Calculate and interpret the value of beta and show it graphically if the true proportion of restaurants that experienced higher than average sales this Memorial Weekend is 45%.

Explanation / Answer

a) p - proportion of those who experience lower than average sales

Ho : p = 0.5

Ha: p > 0.5

X = 1275 , n = 2500

p^ =X/n = 1275/2500 = 0.51

TS = (p^ - p)/sqrt(pq/n)

= (0.51 -0.5)/(sqrt(0.5*0.5/2500))

= 1

p-value = P(Z > 1) = 0.1587

since p-value > alpha (0.03)

we fail to reject the null hypothesis

b) confidence level = 97%

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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