Eagle Outfitters is a chain of stores specializing in outdoor apparel and camping gear. It is considering a promotion that involves mailing discount coupons to all its credit card customers. This promotion will be considered a success if more than 10% of those receiving the coupons use them. Before going national with the promotion, coupons were sent to a sample of 100 credit card customers. Out of the 100 customers, 13 customers said that they used the discount coupons to make a purchase at a Eagle Outfitters store. Use a 0.01 level of significance. (a) Develop the null and alternative hypotheses that can be used to test whether the population proportion of those who will use the coupons is sufficient to go national. (b) Compute the sample proportion. (c) Compute the test statistic. (d) Compute the critical value. (e) Based on the critical value, do we reject H0 or do we not reject H0? (f) Based on the result of the hypothesis test, should Eagle Outfitter go national with the promotion?

Respuesta :

Answer:

Based on the critical value, we fail to reject H0.

Based on the result of the hypothesis test, Eagle Outfitters should go national with the promotion.

Step-by-step explanation:

n= 100

x= 13

To determine the hypothesis:

H0= p>0.10

In order to obtain the sample proportion, you need to divide the number of successes (13) by the sample size (100).

p= 13/100

p= 0.13

To determine the test statistic:

p= P ( Z > 1.10 ) = P (Z < -1.10 ) = 0.1357

If p is smaller than the significant level, you would reject the null hypothesis. However, p>0.05

We fail to reject H0.