Question

A survey of 1475 people who took trips revealed that 107 of them included a visit to a theme park. Based on those survey results, a management consultant claims that less than 9 % of trips include a theme park visit. Test this claim using the \alpha = 0.05 significance level.

a) The test statistic is ______

b) the critical value is ______

Answer 1

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pcap = x/n = 107/1475 = 0.0725

p = .09

a. Test Statistics . t

= (pcap-p)/sqrt(p*p'/n)

= (.0725-.09)/sqrt(.09*91/1475)

= -0.235

b) critical value = -1.982 ( We use the t-tale or Excel formula: T.INV(.025, 1474)

Answer : Since t is not less than -1.982 we fail to reject null hypothesis and conclude that the claim that less than 9% trips include a theme park visit is FALSE