Hypothesis test to validate the claim

Reference no: EM1397289

Since 1970, cigarette manufacturers have been required by law to put warning labels on pack of cigarettes. A person on the Federal Trade Commission is fearful that more than 80% of persons buying cigarettes have never noticed the warning label. In order to test this claim, a random sample of 400 cigarette purchasers are surveyed, and 340 claim they have never noticed the warning label.

a) Set up a hypothesis test to validate this claim.

b) Using a significance level of .01 to test this hypothesis, what is your decision rule?

c) Calculate the test statistic.

d) Interpret your results in the context of the problem

Reference no: EM1397289

Questions Cloud

Case study robert chuckrow construction company : Scenario- Robert Chuckrow Construction Company (Chuckrow) was hired as the general contractor to build a Kinney Shoe Store. Chuckrow employed Ralp Gough to execute the carpentry work on the store.

How to evaluate benefit of revenue-generating system : How is evolving field of IS management leading to increased application of outsourcing? Is management able to evaluate benefit of revenue-generating system or should system be built on faith?

Regression analysis paper : The U.S. Congress enacted legislation in 2005 authorizing Block Grants to cities as part of an Anti-Crime initiative. The grant monies are to be used to hire additional police officers for conducting beat patrols in high crime areas.

Explain market failure : Question- On Market Failure - We thought that the rationale for public policy is either market failure or government failure. Address the subsequent with this rationale in mind

Hypothesis test to validate the claim : Set up a hypothesis test to validate this claim. Using a significance level of .01 to test this hypothesis, what is your decision rule

What types of regulations exist genetic recombination foods : You mistakenly treated each row of data in a dataset as an independent observation. In this case, you would have N = 12 for each of control and treated plants

Define the total hire or fire costs : Centipede has asked you to develop a pursuit plan for the production of its earth moving equipment. Below is the beginning inventory, monthly demand and relevant work force information. Define the total hire/fire costs as well as the number of wor..

Confidence interval for true mean fill volume for all jugs : Construct a 94% confidence interval for the true mean fill volume for all jugs of softener.

Implosive mining company involves in blasting operations : Implosive Mining Company involves in blasting operations. This is subject to firm liability because 1) Blasting is a negligent activity.

User Account

All Pages