Question

In the past, 75% of the tourists who visited Chattanooga went to see Rock City. The management of Rock City recently undertook an extensive promotional campaign, and believe that the promotional campaign actually increased the proportion of tourists visiting Rock City. Of the last 400 tourists, 320 visited Rock City. Is there sufficient evidence to prove the claim at 5% significance level?

(a) Yes

(b) No

(c) We don’t have enough information to decide

Answer 1

Solution :

This is the two tailed test .

The null and alternative hypothesis is

H₀ : p = 0.75

H_a : p > 0.75

= x / n = 320 / 400 = 0.80

Test statistic = z

= - P₀ / [P_{0 *} (1 - P₀ ) / n]

= 0.80 - 0.75 / [(0.75 * 0.25) / 400]

P-value = 0.0105

= 0.05

P-value <

Reject the null hypothesis .

(a) Yes