A small company decides to offer a new online shopping feature. The company’s pr

Question

A small company decides to offer a new online shopping feature. The company’s president wants to offer a free gift card to customers who make a $200 minimum purchase online. These customers can choose any one of three different gift cards of equal value. A month after starting this promotion, it is found that 40 customers selected a restaurant gift card, 29 of them selected a grocery store gift card, and 33 of them selected a movie theater gift card. Using a significance level of 0.05, test the claim that the three gift cards being offered in this promotion are equally popular.



Identify the correct HYPOTHESES used in a hypothesis test of the claim.

a. H0: prestaurant = 40, pgrocery = 29, pmovie = 33



H1: At least one of these proportions is different from the distribution specified in H0. b. H0: prestaurant = pgrocery = pmovie



H1: At least one of these proportions is different from the others c. H0: prestaurant = 0.40, pgrocery = 0.29, pmovie = 0.33



H1: At least one of these proportions is different from the distribution specified in H0. d. H0: prestaurant = 0.392, pgrocery = 0.284, pmovie = 0.324



H1: At least one of these proportions is different from the distribution specified in H0.

Explanation / Answer

H0:three gift cards being offered in this promotion are equally popular.

H1 :three gift cards being offered in this promotion are not equally popular

So Correct option should be (B)

Chi square test: can be used to solve such problems

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