SOLUTION: a) A manufacturer claims that his market share is sixty percent. However a random sample of two hundred customers reveals that only one hundred and ten are users of his product. Te
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Question 898980: a) A manufacturer claims that his market share is sixty percent. However a random sample of two hundred customers reveals that only one hundred and ten are users of his product. Test the manufacturer’s claim at one percent level of significance and interpret your results Answer by ewatrrr(24785) (Show Source):
Hi
Ho: p = 0.6 (claim)
Ha: p < 0.4
sample proportion = p-hat = 110/200= .55
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test stat:: z(0.55) = (0.55-0.6)/sqrt[0.6*0.4/200] = -.05/.0346 = -1.4438
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p-value = P(z < -1.4438) = 0.0744 0r 7.44%
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Conclusion:
Since the p-value is greater than 1%, accept Ho.
The test results support the claim.
