AOL Time Warner Inc.'s CNN has been the longtime ratings leader of cable television news. Nielsen Media Research indicated that the mean CNN viewing audience was 600,000 viewers per day during 2002 (The Wall Street Journal, March 10, 2003). Assume that for a sample of 40 days during the first half of 2003, the daily audience was 612,000 viewers with a sample standard deviation of 65,000 viewers.
a. What are the hypotheses if CNN management would like information on any change in the CNN viewing audience?
b. What is the p-value?
c. Select your own level of significance. What is your conclusion?
d. What recommendation would you make to CNN management in this application?