Question

1. A marketing manager wants to determine if more than 20% of rebate offers are being redeemed. She tests the hypothesis H_o: p = 0.2 vs. H_A: p > 0.2.  She gathers a sample of n = 5000 customers and, based on the data, decides to reject H_oand conclude that H_Ais true.  Several months later, it has become apparent that in fact 24% of rebate offers are being redeemed.  Which of the following are correct?

1. The marketing manager tested the wrong hypothesis.
2. The margin of error for the hypothesis test must have been less than 4%.
3. The marketing manager’s test resulted in a Type I Error.
4. The marketing manager’s test resulted in a Type II Error.
5. The marketing manager’s test resulted in a correct decision.

Answer 1

A marketing manager wants to determine if more than 20% of rebate offers are being redeemed.

H0 : p = 0.2

Ha : p >0.2

on the basis of 5000 samples she rejected null hypothesis in favour of alterantive hypothesis. which means she concluded that more than 20% of rebate offers are being redeemed by customers.

Several months later, it has become apparent that in fact 24% of rebate offers are being redeemed. hence her conclusion was correct.

option e is correct which is The marketing manager’s test resulted in a correct decision.