A country club wants to exam the effects of a new marketing campaign that attemp

Question

A country club wants to exam the effects of a new marketing campaign that attempts to get more people within the community to become members. In many communities, when people buy a house in the area, they receive a “Welcome Wagon” gift basket containing coupons to local restaurants. The idea of the marketing campaign is to include a free two month membership to the country club in the gift basket with the hope that once “new” residents try the country club then at least a certain proportion will want to become real members. One member of the Club’s Executive Council believes that at least 25% of the people who receive the coupons for the free membership will use the coupon. When testing the hypothesis that at least 25% of the people who receive the coupons for the free membership will use the coupon, what is the null and alternative hypothesis? (please write out the null and alternative hypotheses below AND on your scratch work

Explanation / Answer

We want to be confident that the true proportion of people who receive the coupons for the free membership will use the coupon is at least 25%.

Hence, that will be our alternative hypothesis.

Hence,

Ho: p <= 0.25
Ha: p > 0.25 [ANSWER]

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