SOLUTION: Each year, billions of dollars are spent at theme parks owned by Disney, Universal Studios, Seaworld, Busch Gardens, and others. A survey of 1233 people who took trips revealed tha
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-> SOLUTION: Each year, billions of dollars are spent at theme parks owned by Disney, Universal Studios, Seaworld, Busch Gardens, and others. A survey of 1233 people who took trips revealed tha
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Question 1115644: Each year, billions of dollars are spent at theme parks owned by Disney, Universal Studios, Seaworld, Busch Gardens, and others. A survey of 1233 people who took trips revealed that 111 of them included a visit to a theme park (based on the Travel Industry Association of America). Based on those survey results, management consultant Laura Croft claims that less than 10% of trips include a theme park visit. Use a 0.05 significance level to test her claim. Answer by rothauserc(4718) (Show Source):
You can put this solution on YOUR website! 10% of 1233 is 123.3 or approximately 123
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111/1233 = 0.09
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Ho: X = 0.10
H1: X > 0.10
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the sample size(1233) > 30, so we can assume a normal distribution
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mean = 0.10
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standard deviation = square root(0.10 * (1-0.10) / 1233) = 0.0085
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z-score of statistic = (0.09 - 0.10) / 0.0085 = −1.1765
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the probability associated with this z-score is approximately 0.12
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Since this is greater than the significance level of 0.05, we accept the null hypothesis.
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We accept Laura Croft's statement
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Note Ho implies the < sign
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