A retailer is looking to evaluate its customer service. Management has determine

Question

A retailer is looking to evaluate its customer service. Management has determined that if the retailer wants to stay competitive, then it will have to have at least a 87% satisfaction rate among its customers. Management will take corrective actions if the satisfaction rate falls below 87%. A survey of 1,130 customers showed that 949 were satisfied with their customer service.

b.

What is the value of the appropriate test statistic? (Negative value should be indicated by a minus sign. Round intermediate calculations to 4 decimal places. Round your answer to 2 decimal places.)

c.

Compute the p-value. (Round "z" value to 2 decimal places and final answer to 4 decimal places.)

A retailer is looking to evaluate its customer service. Management has determined that if the retailer wants to stay competitive, then it will have to have at least a 87% satisfaction rate among its customers. Management will take corrective actions if the satisfaction rate falls below 87%. A survey of 1,130 customers showed that 949 were satisfied with their customer service.

Explanation / Answer

(b) The test statistic is

Z=(phat-p)/sqrt(p*(1-p)/n)

=(949/1130-0.87)/sqrt(0.87*(1-0.87)/1130)

=-3.02

-------------------------------------------------------------------------------------------

(b) SO the p-value= P(Z<-3.02) =0.0013 (from standard normal table)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.