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A major newspaper is considering to launch an online edition. The newspaper plans to go ahead only if more than 25% of current readers would subscribe. The newspaper surveyed a random sample of 400 current readers, and 110 of those express interest.

a. What should the newspaper do? Use appropriate test and state the assumption(s).

b. What is the P-value for the test you have conducted in part a?

Respuesta :

Answer:

0.4779

Step-by-step explanation:

Given that a  major newspaper is considering to launch an online edition. The newspaper plans to go ahead only if more than 25% of current readers would subscribe

Sample size n =400

Persons who express interest = 110

Sample proportion p = [tex]\frac{110}{400} =0.275[/tex]

Set hypotheses as

[tex]H_0: p=0.25\\H_a: p>0.25[/tex]

(Right tailed test)

p difference = 0.025

STd error of p = [tex]\sqrt{\frac{pq}{n} } \\=\sqrt{\frac{0.25(0.75)}{400} } \\=0.0433[/tex]

Test statistic = [tex]\frac{0.025}{0.0433} \\=0.0577\\[/tex]

p value = 0.4770

Since p >5% we accept null hypothesis

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