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    Testing hypotheses based on a given data set

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    The publisher of a sports magazine plans to offer new subscribers on of the three gifts: a sweatshirt coffee cup or pair of earrings with the logo of their favorite team In a sample of 500 new subscribers, selections made sweatshirts 183,coffe cup
    175 and earrings 142 at the .05 significance level is there a preference for the gifts or should we conclude that the gifts are equally well liked?

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    Solution. We can set up the null hypothesis H0 and the alternative hypothesis H1 as follows.
    H0: The gifts are equally well liked
    H1: The gifts are NOT equally well liked.
    We have

    Solution Summary

    The solution contains detailed explanation of testing hypotheses using the five-step procedures.