A company is willing to renew its advertising campaign with a local radio station only if...

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A company is willing to renew its advertising campaign with alocal radio station only if the station can demonstrate that thereis evidence that more than 20% of the residents of the city haveheard the ad and recognize the company’s product. The stationcontacts 500 residents, and finds that 114 remember the ad.
(a) The station plans to conduct a test at ? = 0.10, but thecompany wants ? lowered to 0.05. Why?
(b) Use the p-value method to conduct the test at ? = 0.10.Would the conclusion differ if ? = 0.05?
(c) Use the critical value method to conduct the test at ? =0.10. It is not necessary to write a conclusion.
?

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3.8 Ratings (326 Votes)

Null hypothesis H0 customers who remember the ad 020 a The station wants the null hypothesis to be rejected while the company wants to make sure there is enough evidence before rejecting the null hypothesis In other words the company wants to make sure there is a strong evidence to reject the null hypothesis At at 10 See Answer

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