Question

One of the most important aspects of a store's image is the perceived quality of its merchandise. Suppose image perceptions of shoppers of specialty stores and shoppers of discount stores are being compared. A random sample of shoppers is taken at each type of store, and the shoppers are asked whether the quality of merchandise is a determining factor in their perception of the store's image. The data show 75% of the 300 shoppers at the specialty stores say yes, but only 52% of the 480 shoppers at the discount store say yes. Test to determine if there is a significant difference between the proportion of shoppers at specialty stores and the proportion of shoppers at discount stores who say that quality of merchandise is a determining factor in their perception of a store’s image. Use a 10% level of significance. (15 points)

Answer 1