Question 970259: You are asked to write a report about a claim that 47% of all new car buyers prefer a four-door car. how you could use a random sample to test this hypothesis. State the null and alternate hypothesis using the proper notation. State the formula for calculating the standardized sample test statistic, z. How will you decide if you should reject or accept the null hypothesis?
Answer by Boreal(15235)   (Show Source):
You can put this solution on YOUR website! Ho=0.47 of new car buyers will prefer a 4-door car.
Ha=NOT 0.47 of new car buyers will prefer a 4-door car (2 sided test)
alpha=0.05 P(reject Ho|when Ho is true)
Test statistic randomly select 100 people (could be more or fewer) and see what the point estimate (the proportion of this group) is.
Critical value will be |z|>1.96 for this 1-proportion test
z= p bar, (point estimate)-pi (p true) / sqrt [pi (1-pi)/n} pi=0.47, the expected proportion.
If |z| >1.96, we will reject the null hypothesis and conclude that not 0.47 of new car buyers prefer a 4-door car.
If |z|<1.96, we will fail to reject the null hypothesis and conclude that there is insufficient evidence to conclude that 0.47 of new car buyers prefer a 4-door car
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