Question

Question:

Consider the future sales of the new BeCool Headsets e 12, which runs at $500 dollars and was released June. In previous releases, 40 percent of owners of older BeCool products purchased the new release within a month. A sample of 35 of the 100 owners of older products bought the new BeCool Headsets e 12 during a three-and-a-half-week period. Has customer loyalty dropped off?

Answer:

Answer 1

Null hypothesis Ho: p = 0.40 (40 percent of owners of older BeCool products purchased the new release)

Alternate hypothesis H1: p < 0.40 (less than 40 percent of owners of older BeCool products purchased the new release)

population proportion po = 40/100 = 0.40

sample proportion = x/n = 35/100 = 0.35 and sample size n = 100

significance level = 0.05

p value using z table for z = -1.02 is 0.1539

here, p-value(0.1539) > significance level (0.05), Failing to reject the null hypothesis

Hence, there is insufficient evidence to conclude that the customer loyalty has dropped off.