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An article states that movie attendance declined in 2005. A survey found that 67

ID: 3266060 • Letter: A

Question

An article states that movie attendance declined in 2005. A survey found that 670 of 1000 randomly selected adult Americans preferred to watch movies at home rather than at a movie theater. Is there convincing evidence that the majority of adult Americans prefer to watch movies at home? Test the relevant hypotheses using a 0.05 significance level. (For z give the answer to two decimal places. For P give the answer to four decimal places.)

The data  ---Select--- provides enough does not provide enough evidence to suggest that the majority of American adults would prefer to watch movies at home rather than at a movie theater.

z = P =

Explanation / Answer

here null hypothesis:Ho p =0.5

alternate hypothesis: p>0.5

here n=1000 ; p=0.5

therefore std error =(p(1-p)/n)1/2 =0.0158

phat=670/1000=0.67

therefore test stat z =(phat-p)/std error =(0.67-0.5)/0.0158 =10.75

for above p value =0.0000

The data provides enough evidence to suggest that the majority of American adults would prefer to watch movies at home rather than at a movie theater.

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