A large manufacturer that sells consumer products on-line wishes to publicize its customer satisfaction in an advertisement. Specifically, it wants to state that over 90% of the manufacturer's customers would tell a friend to buy a product from the manufacturer. The manufacturer selects a random sample of 400 customers from its database, contacts them via email and asks them the question "Would you tell a friend to buy a product from us?" 372 say Yes, and 28 say No. Is thos enough evidence for this manufacturer to state that more than 90% of its costumers would tell their friend to buy a product from the manufacturer?

So the p value obtained was a very low value and using the significance level assumed we have so we can conclude that we have enough evidence to reject the null hypothesis, and we can said that at 5% of significance the proportion of people who say yes is significantly higher than 0.9 or 90%.

Step-by-step explanation:

Data given and notation

n=400 represent the random sample taken

X=372 represent the number of people who say yes

estimated proportion of people who say yes

is the value that we want to test

represent the significance level

z would represent the statistic (variable of interest)

represent the p value (variable of interest)  

Concepts and formulas to use  

We need to conduct a hypothesis in order to test the claim that that more than 90% of its costumers would tell their friend to buy a product from the manufacturer.:  

Null hypothesis:  

Alternative hypothesis:  

When we conduct a proportion test we need to use the z statistic, and the is given by:  

(1)  

The One-Sample Proportion Test is used to assess whether a population proportion is significantly different from a hypothesized value .

Calculate the statistic  

Since we have all the info requires we can replace in formula (1) like this:  

Statistical decision  

It's important to refresh the p value method or p value approach . "This method is about determining "likely" or "unlikely" by determining the probability assuming the null hypothesis were true of observing a more extreme test statistic in the direction of the alternative hypothesis than the one observed". Or in other words is just a method to have an statistical decision to fail to reject or reject the null hypothesis.  

The significance level assumed for this case is . The next step would be calculate the p value for this test.  

Since is a right tailed test the p value would be:  

So the p value obtained was a very low value and using the significance level assumed we have so we can conclude that we have enough evidence to reject the null hypothesis, and we can said that at 5% of significance the proportion of people who say yes is significantly higher than 0.9 or 90%.

$300 is expected to be paid to the insurance company each month for coverage.

Step-by-step explanation:

Deductible is the set amount that one pays himself at the time of claiming insurance. Like here, if $500 is deductible, that means when the person will claim the insurance, he himself will pay $500 ,and the rest insured amount will be paid by the company.

So, here $300 is the monthly premium and $500 deductible is the one time set amount that does not have to be paid monthly.

Hence, $300 is the correct answer.