In 1894, druggist Asa Candler began distributing handwritten tickets to his customers for free glasses of Coca-Cola

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In 1894, druggist Asa Candler began distributing handwritten tickets to his customers for free glasses of Coca-Cola at his soda fountain. That was the genesis of the discount coupon. In 1975, it was estimated that 65% of US consumers regularly used discount coupons when shopping. In a more recent consumer survey, 81% said they regularly redeem coupons (NCH Marketing Services 2015 Consumer Survey). Assume the recent survey consisted of a random sample of 1,000 shoppers.

a. Does the survey provide sufficient evidence that the percentage of shoppers using cents-off coupons exceeds 65%? Test using α = .05.

b. Is the sample size large enough to use the inferential procedures presented in this section? Explain.

c. Find the observed significance level for the test you conducted in part a and interpret its value.

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Statistics For Business And Economics

ISBN: 9780136855354

14th Edition

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

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