Question

A marketing survey involves product recognition for Eddy's Ice Cream in California. A survey was run and 75 out of 112 Californians knew the product. Using a 0.02 significance level, test the claim that more than 60% of Californians recognize Eddy's Ice Cream. At the end of your work, write a one or two sentence summary in non-statistical language to describe what you have found, not how you found it. Your audience is people who have never had a statistics class (think of middle of the road 8th graders, not the really bright ones).

Answer 1

Solution :

This is the right tailed test .

The null and alternative hypothesis is

H0 : p = 0.60

Ha : p > 0.60

= x / n = 112 / 75 = 0.6696

P0 = 0.60

1 - P0 = 1 - 0.60 = 0.40

Test statistic = z

= - P0 / [P0 * (1 - P0 ) / n]

= 0.6696 - 0.60 / [0.60 * (0.40) / 112 ]

= 1.504

P-value = 0.0662

= 0.02   

0.0662 > 0.02

P-value >

Fail to reject the null hypothesis .

There is not sufficient evidence to test the claim that is more than 60% , at the = 0.02 significance level