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Aspect148
Aspect148
13.03.2020 • 
Mathematics

A company is deciding whether to renew its ad buy with a local TV station. It will renew the ad if a 2-sided hypothesis test at the 10% level concludes that more than 19% of the local residents remember the ad. They decide to test this by contacting 300 randomly selected local residents. Sixty-seven (67) of the 300 remember the ad.

a. Conduct the requested hypothesis test based on this sample using the normal approximation. (Use Minitab.) Report your conclusions, stated in terms of the data and the sampling scenario.

b. The station advocates that the decision be made based on a 1-sided hypothesis test using the normal approximation at the 10% level using this sample. Why? (Hint: If you conduct the appropriate 1-sided test based on this sample, what will the p-value be? Confirm your answer with Minitab by conducting this 1-sided test.)

c. If you conduct the 1-sided test based on this sample using the exact method, will the p-value be exactly one-half of the 2-sided exact method p-value? Why or why not?

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