Concept explainers
(a)
To explain should the company renew the contract.
(a)
Answer to Problem 30E
The company should not renew the contract.
Explanation of Solution
It is given in the question that a company is willing to renew its advertising contract with a local radio station only if the station can prove that more than
Thus, let us check the appropriate conditions and assumptions for inference to proceed further to test hypothesis as:
Random condition: It is satisfied as we assumed that the sample was randomly selected from the population.
Independent condition: It is satisfied as we can assume that the sample is independent.
Success/failure condition: It is satisfied because both are greater than ten as,
Thus, all the conditions are satisfied. Thus, for this first we have to select
So, by putting the values above by using the calculator we will get the result as,
The value of z-statistics and the P-value will be then,
And as we know if the P-value is smaller than the significance level, then reject the null hypothesis, so, we have,
Thus, we conclude that we are unable to prove that over
(b)
To explain what your P-value means in this context.
(b)
Explanation of Solution
It is given in the question that a company is willing to renew its advertising contract with a local radio station only if the station can prove that more than
The value of z-statistics and the P-value will be then,
Thus, the P-value in this context means that there is a
Chapter 21 Solutions
Stats: Modeling the World Nasta Edition Grades 9-12
Additional Math Textbook Solutions
Basic Business Statistics, Student Value Edition (13th Edition)
Elementary Statistics (13th Edition)
An Introduction to Mathematical Statistics and Its Applications (6th Edition)
Introductory Statistics
Statistical Reasoning for Everyday Life (5th Edition)
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