SOLUTION: 12. For many years TV executives used the guideline that 30 percent of the audience were watching each of the prime-time networks and 10 percent were watching cable stations on a

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Question 136372: 12. For many years TV executives used the guideline that 30 percent of the audience were
watching each of the prime-time networks and 10 percent were watching cable stations on
a weekday night. A random sample of 500 viewers in the Tampa–St. Petersburg, Florida,
area last Monday night showed that 165 homes were tuned in to the ABC affiliate, 140 to
the CBS affiliate, 125 to the NBC affiliate, and the remainder were viewing a cable station.
At the .05 significance level, can we conclude that the guideline is still reasonable?

Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
For many years TV executives used the guideline that 30 percent of the audience were watching each of the prime-time networks and 10 percent were watching cable stations on a weekday night.
A random sample of 500 viewers in the Tampa–St. Petersburg, Florida,
area last Monday night showed that 165 homes were tuned in to the ABC affiliate, 140 to the CBS affiliate, 125 to the NBC affiliate, and the remainder were viewing a cable station.
At the .05 significance level, can we conclude that the guideline is still reasonable?
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Ho: the guideline is reasonable
Ha: the guideline no longer applies
-----------------------------------------
Expected number out of 500:...150......150......150......50
Observed number out of 500:...165......140......125......70
------------------------------------------------------------
Calculate Chi-Sq: the sum of (O-E)^2/E for each pair = 6.66517...
p-value is 0.08337...
Conclusion: Since p-value is greater than alpha = 5%, Fail to reject Ho.
The observed numbers are statistically the same
as the expected numbers; the guideline is still reasonable.
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Cheers,
Stan H.