A major auto dealer has recently unleashed a new advertising campaign for its line of 4-wheel-drive vehicles. Knowing that previously 32% of all people who saw the commercial and came to visit the dealership purchased one of those cars, they would like to see if the new commercial improves on those chances. Let p represent the proportion of all car buyers who would see the new ad and then purchase that car, so that the null hypothesis is p = 0.32.

a) Suppose 40% of a sample of 50 consumers purchase the car. That would lead to what P-value in deciding whether you have sufficient evidence that the new ad is an improvement over the old one?

b) Suppose that 40% of a sample of 100 consumers purchase the car. Is there sufficient evidence to conclude that the new ad is an improvement over the old one? Determine the P-value of this test.

c) With 40% of your sample choosing to purchase the car instead of the 32% that was typical using the older ad, which of the two sample sizes, 50 or 100, provided better evidence that the new ad works better than the older one?

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Solution Quiz c Aspvalue is small for n100so sample size of 100 provide better evidenc... View the full answer