Customers who participate in a store's free loyalty card program save money on their purchases, but allow

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Customers who participate in a store's free loyalty card program save money on their purchases, but allow the store to keep track of the customer's shopping habits and potentially sell these data to third parties. A Pew Internet & American Life Project Survey (January 2016) revealed that 225 of a random sample of 250 U.S. adults would agree to participate in a store loyalty card program, despite the potential for information sharing. Let p represent the true proportion of all customers who would participate in a store loyalty card program.

a. Compute a point estimate of p.

b. Consider a store owner who claims that more than 80% of all customers would participate in a loyalty card program. Set up the null and alternative hypotheses for testing whether the true proportion of all customers who would participate in a store loyalty card program exceeds .8.

c. Compute the test statistic for part b.

d. Find the rejection region for the test if α = .01.

e. Find the p-value for the test.

f. Make the appropriate conclusion using the rejection region.

g. Make the appropriate conclusion using the p-value.

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Statistics For Business And Economics

ISBN: 9780134506593

13th Edition

Authors: James T. McClave, P. George Benson, Terry Sincich

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