Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In the book Essentials of Marketing Research, William R. Dillon, Thomas J. Madden, and Neil H. Firtle discuss a research proposal in which a telephone

image text in transcribed
In the book Essentials of Marketing Research, William R. Dillon, Thomas J. Madden, and Neil H. Firtle discuss a research proposal in which a telephone company wants to determine whether the appeal of a new security system varies between homeowners and renters. Independent samples of 140 homeowners and 60 renters are randomly selected. Each respondent views a TV pilot in which a test ad for the new security system is embedded twice. Afterward, each respondent is interviewed to find out whether he or she would purchase the security system. Results show that 25 out of the 140 homeowners definitely would buy the security system, while 9 out of the 60 renters definitely would buy the system. (a) Letting py be the proportion of homeowners who would buy the security system, and letting p2 be the proportion of renters who would buy the security system, set up the null and alternative hypotheses needed to determine whether the proportion of homeowners who would buy the security system differs from the proportion of renters who would buy the security system. HO: p1 - p2 versus Ha: p1 - p2 (b) Find the test statistic z and the p-value for testing the hypotheses of part a. Use the p-value to test the hypotheses with a equal to .10, .05, .01, and .001. How much evidence is there that the proportions of homeowners and renters differ? (Round the intermediate calculations to 3 decimal places. Round your z value to 2 decimal and p-value to 3 decimal places.) Z = p - value = Reject HO at a = , but not at a = evidence that p1 and p2 differ. (c) Calculate a 95 percent confidence interval for the difference between the proportions of homeowners and renters who would buy the security system. On the basis of this interval, can we be 95 percent confident that these proportions differ? (Round your answers to confidence interval to 4 decimal places. Negative amounts should be indicated by a minus sign. ) Confidence interval =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Calculus Early Transcendentals

Authors: Michael Sullivan, Kathleen Miranda

7th Edition

1464144397, 9781464144394

More Books

Students also viewed these Mathematics questions