Question

A marketing manager for a cell phone company claims that the percentage of children aged 8-12 who have cell phones differs from 61%. In a survey of 826 children aged 8-12 by a national consumers group, 545 of them had cell phones. Can you conclude that the manager's claim is true? Use the α=0.10 level of significance and the P-value method with the TI-84 Plus calculator.

a. state null and alternative hypothesis. what tail is the hypothesis test?

b. Compute the value of the test statistic.

c. Using α=0.10, can you conclude that less than 58 of children aged 8-12 have cell phones?

d. state conclusion

Answer 1

Part a)

To Test :-

H0 :- P = 0.61
H1 :- P ≠ 0.61

It is two tailed test

Part b)

Z = 2.93

Part c)

Reject null hypothesis if P value < α = 0.1
Since P value = 0.0033 < 0.1, hence we reject the null hypothesis
Conclusion :- We Reject H0

Part d)

There is sufficient evidence to support the manager's claim.