According to the University of Nevada Center for Logistics Management, 6% of all merchandise sold in the United States gets returned (BusinessWeek, January 15, 2007). A Houston department store sampled 80 items sold in January and found that 12 of the items were returned. Is the proportion of returns at the Houston store significantly larger than the returns for the nation as a whole? b. Clearly state all the statistics given. Compute the value of the sample proportion. c. Compute the standardized test statistic. d. Report the critical value(s) associated with a 1% level of significance. What is your decision based on the critical value approach? (Reject Ho or fail to reject Ho?)
According to the University of Nevada Center for Logistics Management, 6% of all merchandise sold in the United States gets returned (BusinessWeek, January 15, 2007). A Houston department store sampled 80 items sold in January and found that 12 of the items were returned. Is the proportion of returns at the Houston store significantly larger than the returns for the nation as a whole?
b. Clearly state all the statistics given. Compute the value of the sample proportion.
c. Compute the standardized test statistic.
d. Report the critical value(s) associated with a 1% level of significance. What is your decision based on the critical value approach? (Reject Ho or fail to reject Ho?)
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