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A survey claims that 7 out of 10 customers recommend Company A for pharmacy issu

ID: 3254557 • Letter: A

Question

A survey claims that 7 out of 10 customers recommend Company A for pharmacy issues. To test this claim, a random sample of 100 customers is obtained from the list of rewards customers. Of these 100 customers, 75 indicate that they recommend using Company A for pharmacy needs. We would like to know if the original claim is accurate. State your conclusion using

Alpha = 0.05.

The null hypothesis is supported: there is evidence that 70% of customers recommend Company A for pharmacy issues.

The null hypothesis is not supported: there is evidence that more than 70% of customers recommend Company A for pharmacy issues.

The null hypothesis is not supported: there is evidence that less than 70% of customers recommend Company A for pharmacy issues.

The null hypothesis is not supported: there is evidence that the percentage of customers who recommend Company A for pharmacy issues is not equal to 75%.

A.

The null hypothesis is supported: there is evidence that 70% of customers recommend Company A for pharmacy issues.

B.

The null hypothesis is not supported: there is evidence that more than 70% of customers recommend Company A for pharmacy issues.

C.

The null hypothesis is not supported: there is evidence that less than 70% of customers recommend Company A for pharmacy issues.

D.

The null hypothesis is not supported: there is evidence that the percentage of customers who recommend Company A for pharmacy issues is not equal to 75%.

Explanation / Answer

The statistical software output for this problem is:

One sample proportion hypothesis test:
p : Proportion of successes
H0 : p = 0.7
HA : p 0.7

Hypothesis test results:

Since p - value > 0.05, do not reject Ho. Hence,

The null hypothesis is supported: there is evidence that 70% of customers recommend Company A for pharmacy issues.

Option A is correct.

Proportion Count Total Sample Prop. Std. Err. Z-Stat P-value p 75 100 0.75 0.045825757 1.0910895 0.2752
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