A new product was tested in Fresno with a 25-cent coupon and in Tulsa with a 50-cent

Question:

A new product was tested in Fresno with a 25-cent and in Tulsa with a 50-cent A sample of 100 people was contacted in each test city. A total of 40 percent of those contacted in Tulsa had tried the new product, whereas only 30 percent of those contacted in Fresno had tried it, a 10 percent difference. Prior to making the decision as to which to use in the marketing program, a hypothesis was suggested.
a. What should the null hypothesis be?
b. What should the alternative hypothesis be?
c. The probability of obtaining this result under the null hypothesis, namely, that the trial level in Tulsa was 10 percent higher than that in Fresno, was determined to be 0.06. What is the p-value?
d. Is the result significant at the .10 level? At the .05 level? Would you reject the null hypothesis at the .10 level? At the .05 level?
e. Does the hypothesis show that there will be more trials with a 50-cent Do you feel that a 50-cent should be used?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a...