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A recent sports game set a record for the number of television viewers. The game

ID: 3153338 • Letter: A

Question

A recent sports game set a record for the number of television viewers. The game had a share of 76%, meaning that among the television sets in use at the time of the game, 76% were tuned to the game. The sample size is 24,398 households. Use a 0.050 significance level to test the claim that more than 74% of television sets in use were tuned to the sports game. Identify the null hypothesis, alternative hypothesis, test statistic, P-value, conclusion about the null hypothesis, and final conclusion that addresses the original claim. Use the P-value method and the normal distribution as an approximation to the binomial distribution.What is the test statistic?What is the P-value?What is the conclusion on the null hypothesis?What is the final conclusion?

Explanation / Answer

A)

Formulating the null and alternatuve hypotheses,          
          
Ho:   p   <=   0.74
Ha:   p   >   0.74

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As we see, the hypothesized po =   0.74      
Getting the point estimate of p, p^,          
          
p^ = x / n =    0.76      
          
Getting the standard error of p^, sp,          
          
sp = sqrt[po (1 - po)/n] =    0.002808183      
          
Getting the z statistic,          
          
z = (p^ - po)/sp =    7.122042735   [ANSWER, TEST STATISTIC]

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As this is a    1   tailed test, then, getting the p value,  
          
p =    5.31695*10^-13       [ANSWER, P VALUE]

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As P is very small, we   REJECT THE NULL HYPOTHESIS.   [ANSWER, DECISION ABOUT THE NULL HYPOTHESIS]

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Hence, there is significant evidence that more than 74% of television sets in use were tuned to the sports game. [CONCLUSION]