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(1 point) The editor of a magazine knows that 41 % of all people who subscribe t

ID: 3040249 • Letter: #

Question

(1 point) The editor of a magazine knows that 41 % of all people who subscribe to the magazine do not renew their subscriptions. In an attempt to decrease this percentage, current subscribers are offered a renewal offer - one that offers current subscribers to renew their subscription at a substantially reduced price. After a period of six-months, the magazine editor wishes to investigate if this renewal offer does decrease the percentage of subscribers who do not renew subscriptions, or p. (a) Choose the correct statistical hypotheses. A, Ho : p = 0.41 B. Ho : p = 0.41 C. Ho : p = 0.41 D. Ho : p = 0.41 E. H0 : p = 0.41 F. Ho : p = 0.41 HA :p>0.41 HA : p 0.41 HA: p0.41 HA : p

Explanation / Answer

a) option B is correct

b) std error =(p*(1-p)/n)1/2 =0.0348

for 0.05 level critical z =-1.645

here rejection region phat<p +z*std error

phat<0.41-1.645*0.0348

phat<0.3528

therfore sample size n<0.3528*200

n<70.55

hence n=70

c)

as p vlaue is greater than 0.05 level ; we cna not reject null hypothesis which might be a type II errror

option B

d)

Hypothesized proportion      =p o        = 0.41 true proportion                          =pa                                         = 0.36 sample size                                 =n = 200 standard error of hypothesized proportion=Po=(po(1-po)/n)= 0.0348 standard error of true proportion=Pa=(pa(1-pa)/n)    = 0.0339 for 0.05 level and left tailed test critival value Z = -1.6449 rejection region: p <= po+Z*Po     or p <= 0.3528 type II error =probability of not rejecting       =   P(Z >(0.3528- pa)/Pa))          = P(Z >-0.2121)          = 0.5840 power of the test                                     =1-          = 0.4160