Question

A financial company gives its banking customers a commission if they refer new people to open bank accounts. As a​ result, 65​% of new customers at the bank came from referrals in 2014. Another bank had 16​% referrals last year​ (out of a total of 65 comma 000 new​ customers) and has increased the commission this year. It expects to achieve 20​% referrals this year and picks a random selection of 200 new customers and finds that 18​% of them came from referrals.

Calculate the power of the​ test, based on the expected increase. The power is ______

Answer 1

Ho: p = 0.16

Ha : p > 0.16

power = reject the null hypothesis when it is false

Assuming alpha = 0.05

Using Minitab

Stat -> Power and sample size

power = 0.2023

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