You are the Director of Ticket Sales for the Kansas City Royals. Over the past 10 years, average attendance has dipped, thus the ownership group is considering improvements to the stadium to attract younger fans. From the period since Kauffman Stadium opened (April 1973) through October 2012, the average game attendance was 22,655. For the 2019 season—82 home games—the average attendance was 22,402 with a sample standard deviation of 899. Before the ownership group commits to $275M in stadium upgrades, they ask you for statistical evidence that attendance has decreased. Why is a hypothesis test a better statistical approach than a confidence interval to base your response to the ownership group? Is the appropriate hypothesis test a left, right, or two-tailed test? State the null and alternative hypotheses for the appropriate test. You choose to conduct the test at the .01 level of significance (having an associated critical value of +/- 2.37) and determine the test statistic is -2.55. Has attendance decreased significantly? Explain your response and comment on the use of a .01 level of significance versus a .05 level of significance.

Answered: You are the Director of Ticket Sales…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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You are the Director of Ticket Sales for the Kansas City Royals. Over the past 10 years, average attendance has dipped, thus the ownership group is considering improvements to the stadium to attract younger fans. From the period since Kauffman Stadium opened (April 1973) through October 2012, the average game attendance was 22,655. For the 2019 season—82 home games—the average attendance was 22,402 with a sample standard deviation of 899.

Before the ownership group commits to $275M in stadium upgrades, they ask you for statistical evidence that attendance has decreased.

Why is a hypothesis test a better statistical approach than a confidence interval to base your response to the ownership group? Is the appropriate hypothesis test a left, right, or two-tailed test?
State the null and alternative hypotheses for the appropriate test.
You choose to conduct the test at the .01 level of significance (having an associated critical value of +/- 2.37) and determine the test statistic is -2.55. Has attendance decreased significantly? Explain your response and comment on the use of a .01 level of significance versus a .05 level of significance.

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