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USA Today reported that about 47% of the general consumer population in the Unit

ID: 2947947 • Letter: U

Question

USA Today reported that about 47% of the general consumer population in the United States is loyal to the automobile manufacturer of their choice. Suppose Chevrolet did a study of a random sample of 1003 Chevrolet owners and found that 489 said they would buy another Chevrolet. Does this indicate that the population proportion of consumers loyal to Chevrolet is more than 47%? Use ? = 0.01.

(a) What is the level of significance?


State the null and alternate hypotheses.

H0: p = 0.47; H1: p > 0.47H0: p = 0.47; H1: p < 0.47    H0: p > 0.47; H1: p = 0.47H0: p = 0.47; H1: p ? 0.47


(b) What sampling distribution will you use?

The standard normal, since np < 5 and nq < 5.The Student's t, since np < 5 and nq < 5.    The Student's t, since np > 5 and nq > 5.The standard normal, since np > 5 and nq > 5.


What is the value of the sample test statistic? (Round your answer to two decimal places.)


(c) Find the P-value of the test statistic. (Round your answer to four decimal places.)


Sketch the sampling distribution and show the area corresponding to the P-value.

Explanation / Answer

The statistical software output for this problem is:

One sample proportion summary hypothesis test:
p : Proportion of successes
H0 : p = 0.47
HA : p > 0.47

Hypothesis test results:

Hence,

a) Level of significance = 0.01

Hypotheses: H0: p = 0.47; H1: p > 0.47

b) The standard normal, since np> 5 and nq > 5.

Sample test statistic = 1.11

c) P - value = 0.1329

Proportion Count Total Sample Prop. Std. Err. Z-Stat P-value p 489 1003 0.48753739 0.015759281 1.1128292 0.1329