A company is willing to renew its advertising contract with a local radio station only if the station can prove that more than 20% of the residents of the city have heard the ad and recognize the company's product. The company randomly selects a sample of residents and contacts them. The results in the advertising_contract dataset represent how many of them remembered the ad. The company wants to decide whether to renew the contract or not. The local radio station plans to conduct this test using a 10% level of significance, but the company wants the significance level lowered to 5%.

Deliverable: Submit your summary report as a three-page memo per group in a PDF file (pages 1 and 2 contain your report addressing problems 1 and 2, and page 3 contains your attachments (e.g., screenshots of tables/figures). Address the following questions:

• • (3 points) Business memo format
  • (15 points) Problem 1
    • (3pts) Discussion of the assumptions/conditions before generating the CIs.
    • (2pts) Remove outliers and filter your data.
    • (3pts) State and Interpret your three CIs.
    • (2pts) Provide explanations of why the 3 CIs are similar.
    • (2pts) Provide explanations of why the 3 CIs are different.
    • (3pts) Attach three screenshots of your CI outputs on page 3 (it should contain distribution, summary statistics, and CIs).
  • (17 points) Problem 2
    • (2pts) State hypothesis.
    • (6 pts) In the context of type I vs. type II errors, analyze the reason why the level of significance preferred by the company is lower than the significance level that the contractor prefers (explain in the context).
    • (7 pts) Should the company renew the contract? Support your recommendation with a complete hypothesis test, using alpha = 0.05.
    • (2 pts) Explain carefully what the p-value means in this context.

Bonus points: Up to +3 extra points for professional reports in the analysis and/or format of the memo.