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# Testing hypothesis

AOL Time Warner Inc.'s CNN has been the longtime ratings leader of cable television news. Nielsen Media Research indicated that the mean CNN viewing audience was 600,000 viewers per day during 2002 (The Wall Street Journal, March 10, 2003). Assume that for a sample of 40 days during the first half of 2003, the daily audience was 612,000 viewers with a sample standard deviation of 65,000 viewers.

a. Develop the hypotheses if CNN management would like information on any change in the CNN viewing audience.
b. Determine the p-value.
c. Select a level of significance. Explain your conclusion.
d. Provide a recommendation to CNN management in this application

#### Solution Preview

a. Develop the hypotheses if CNN management would like information on any change in the CNN viewing audience.

Null Hypothesis: Ho:&#956;&#8804;600,000 The daily audience is less than or equal to 600,000
Alternative Hypothesis: H1: &#956;> 600,000 The daily audience is greater than 600,000

b. Determine the ...

#### Solution Summary

The hypothesis about the daily audience for CNN is tested.

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