How do I solve this? Preferably in Excel
Radio advertising promoting weight loss program that claims 70% of customers will lose 20 pounds in thirty days. Customer protection group concerned that the ads are misleading. Random sample of 100 person. Found 72 out of 100 lost 20 lbs. Conduction hypothesis test of the claim using 5% significance.
a. State null and alternative hypothesis’ b. Calculate the test statistic
c. Find critical value d. Find p-value
e. State decision f. State conclusion
Solution:
Using the P-value approach: [Excel command =NORMSDIST(0.436) ] . The p-value is p = 0.6625, and since p = 0.6625 ? 0.05, it is concluded that the null hypothesis is not rejected.
5) Conclusion: It is concluded that the null hypothesis Ho is not rejected. Therefore, there is not enough evidence to claim that the population proportion p is different than p0?, at the ?=0.05 significance level.
That is, there is not enough evidence to claims 70% of customers will lose 20 pounds in thirty days.
Done
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