Question
Asked Oct 21, 2019
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Competition in the personal computer market is intense. A sample of 450 purchases
showed 202 brand A computers, 175 brand b computers, and 73 other computers. Use
a .05 level of significance to test the null hypothesis that brand A and brand b have the
same share of the personal computer market. What is your conclusion?

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Expert Answer

Step 1

There are total of 450 purchases, among 202 are brand A computers, 175 are brand B computers and 73 are other type of computers. The level of significance is 0.05. The hypothesis to be tested is,

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Ho p 050 Hp 0.50

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Step 2

The proportion of people who purchase brand A is defined as p. The claim that brand A and brand B have the same share of the personal computer market is the null hypothesis. Thus, the alternative hypothesis is there is a difference in the share of the personal computer market for brand A and brand B. From the data, there are 202+175 =377 computers of brand A and brand B.

Step 3

For a sign test the mean,µ=0.5n  and standard deviation, &sigm...

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0.5(377 - 188.5

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Statistics

Hypothesis Testing

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