Question

A major home improvement store conducted its biggest brand recognition campaign in the company’s history. A series of new television advertisements featuring well-known entertainers and sports figures were launched. A key metric for the success of television advertisements is the proportion of viewers who “like the ads a lot”. A study of 1,189 adults who viewed the ads reported that 230 indicated that they “like the ads a lot.” The percentage of a typical television advertisement receiving the “like the ads a lot” score is believed to be 22%. Company officials wanted to know if there is evidence that the series of television advertisements are less successful than the typical ad (i.e. if there is evidence that the population proportion of “like the ads a lot” for the company’s ads is less than 0.22) at a 0.01 level of significance.

Perform the hypothesis test for the company (show all the steps).

Answer 1