Explanation Given info: A random sample of 250 has been taken to find the number of customer participated in loyalty program. Calculation: The test hypotheses are: Null hypothesis: H 0 : p = 0.8 That is, the proportion of the customers participated in the loyalty program is 80% Alternative hypothesis: H 1 : p > 0.8 That is, the proportion of the customers participated in the loyalty program is greater 80%. From appendix D “Table II Normal curve areas”, the value of z 0.05 = 2.33 . The value of p ^ can be obtained as z 0 = p ^ − p 0 p 0 ( 1 − p 0 ) n 2.33 = p ^ − 0.8 0.8 ( 1 − 0.8 ) 250 2.33 × 0.8 ( 1 − 0.8 ) 250 = p ^ − 0.8 2.33 × 0.025298 = p ^ − 0.8 0

Statistics for Business and Economics (13th Edition)

13th Edition

ISBN: 9780134506593

Author: James T. McClave, P. George Benson, Terry Sincich

Publisher: PEARSON

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Chapter 7.8, Problem 7.104ACI

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To identify: The probability of the customers participated in the loyalty program is greater 79% at level of significance α=0.01 .

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Chapter 7.8, Problem 7.103ACI

Chapter 7.8, Problem 7.105ACI

Chapter 7 Solutions

Statistics for Business and Economics (13th Edition)

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