19. The owner of a department store in Rochester, New York, initiates a week-long newspaper advertising campaign

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19. The owner of a department store in Rochester, New York, initiates a week-long newspaper advertising campaign to increase awareness of the store. Before investing any additional money in advertising, the owner takes a phone survey to check whether potential cus- tomers are more inclined or less inclined to shop in this store after seeing the advertising. Consider the population of residents who have seen the ad and are either more inclined or less inclined to shop there than before seeing the ad. Of these people. Jet r denote the proportion who are more inclined. For a random sample of 100 names selected from the telephone book, 25 express an opinion Of these 25 subjects, 18 say they are more in- clined to shop at the store, and 7 say they are less inclined. .5. Interpret

a) Report the P-value for testing Ho. = 5 against H,

b) Make a decision using a 05. Can the owner conclude that, of those with an opin- ion, a najority are more likely to shop at the store?

c) If you made an error with the decision in (b), would it be a Type I error or a Type II ?

d) Consider the proportion of residents who have not seen the ad or who are neither more nor less likely to shop at the store as a result of the ad. Can you determine whether this is a majority or minority of the population? (Answer by performing a test or constructing a confidence interval that uses all 100 observations.)

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