Question

An article states that movie attendance declined in 2005. A survey found that 0.40 of 1000 randomly selected adult Americans preferred to watch movies at home rather than at a movie theater. Is there convincing evidence that the majority of adult Americans prefer to watch movies at home? Test the relevant hypotheses using a 0.05 significance level. (For z give the answer to two decimal places. For P give the answer to four decimal places.)

z	=
P	=

The data (provides enough OR does not provide enough) evidence to suggest that the majority of American adults would prefer to watch movies at home rather than at a movie theater.

Answer 1

Sample size is N = 1000

Sample proportion, = 0.40

Majority of adults mean more than 50 %

Null and Alternative Hypotheses

The following null and alternative hypotheses need to be tested:

Ho: p = 0.50

Ha: p > 0.50

Test Statistics

P-value:

The p-value is p = 1, and since p = 1 > 0.05, it is concluded that the null hypothesis is not rejected.

The data does not provide enough evidence to suggest that the majority of American adults would prefer to watch movies at home rather than at a movie theater.