Question
A grocery store's use of paper coupons resulted in 70% of their customers using the paper coupons. The store has recently started using digital coupons
A grocery store's use of paper coupons resulted in 70% of their customers using the paper coupons. The store has recently started using digital coupons instead of paper coupons in hopes that this will increase coupon-rate usage by its customers. Use this information to address parts (a) and (b) below.
[1 pt] (a) Using the appropriate symbols, state the null and alternative hypotheses for a hypothesis test whose purpose is to determine if the use of digital coupons instead of paper coupons results in an increased percentage of its customer using coupons than was the case when only paper coupons were used.
[1 pt] (b) A statistician working for this grocery store correctly computes the P-value and determines that it equals 0.27. We know that since this is a 'large' P-Value (it is greater than 0.05) that the statistician must fail to reject the null hypothesis. But, what does P-value means in this context? Describe the the specific event in this hypothesis test that has the conditional probability equal to 0.27 of occurring. Be specific, clear, & complete.
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