Last year, a luxury hotel chain operating across the Caribbean attracted 14% of Canadian snowbirds travelling to the Caribbean during February and found that 56% were “very satisfied” with their stay. This year, the chain has upgraded its properties, with the aim of achieving 70% “very satisfied” guests. Pollsters randomly select 100 guests to express their satisfaction level and find that 66% are “very satisfied.”

a) State the hypotheses.

b) What is the power of this test if a 1% significance level is used in interpreting the results? Interpret the meaning of “power.”

c) If the result of the survey was higher than 66% “very satisfied,” would the power be higher?

d) If the significance level was higher, would the power be higher?

Give reasons for your answers to (c) and (d) without actually doing the calculations.