Question

1. A magazine is considering the launch of an online version. The magazine will only go ahead with the launch if it is convinced that more than 25% of current readers would subscribe. A hypothesis test was conducted and a test statistic of z = 1.53 was found. When testing at a 5% significance level, which is the appropriate statistical decision?

   		The magazine would not be convinced that more than 25% of current readers would subscribe, so they would not launch the online version.
   		The magazine would be convinced that more than 25% of current readers would subscribe, so they would launch the online version.
   		The magazine would be convinced that less than 25% of current readers would subscribe, so they would not launch the online version.
   		The conclusion cannot be determined from the information given without knowing the sampling proportion and sample size.

2 points

Question 7

1. Was the question above a one-tailed or a two-tailed test? How did you determine that?

Answer 1

Solution :

7)

The magazine will only go ahead with the launch if it is convinced that more than 25% of current readers would subscribe.

This is the right tailed test .

z = 1.53

P(z > 1.53) = 1 - P(z < 1.53) = 0.063

P-value = 0.063

= 0.05

P-value >

Fail to reject the null hypothesis .

The magazine would not be convinced that more than 25% of current readers would subscribe, so they would not launch the online version.