Question
The CEO of a large electric utility claims that at least 80 percent of his 1,000,000 customers arevery satisfied with the service they receive. To
The CEO of a large electric utility claims that at least 80 percent of his 1,000,000 customers arevery satisfied with the service they receive. To test this claim, the local newspaper surveyed 100customers, using simple random sampling. Among the sampled customers, 73% say they are very
satisfied. Based on these findings, can we reject the CEO's claim that 80% of the customers are verysatisfied? Use = 0.05 level of significance.
a. Formulate the null and alternative hypotheses. (4 pts)
b. Write the level of significance and sketch the curve of the test (5 points)
c. Write the critical value of the test statistic. (1 point)
d. Determine test - statistic /compute for z - value (4 points)
e. What is the correct decision and conclusion? (6 points)
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