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Hypothesis Tesing on Proportion on Eagle Outfitters Example

Eagle Outfitters is a chain of stores specializing in outdoor apparel and camping gear. It is considering a promotion that involves mailing discount coupons to all its credit card customers. This promotion will be considered a success if more than 10% of those receiving the coupons use them. Before going national with the promotion, coupons were sent to a
sample of 100 credit card customers.

a. Develop hypotheses that can be used to test whether the population proportion of those who will use the coupons is sufficient to go national.
b. Use a = 0.05 to conduct your hypothesis test. Should Eagle go national with the promotion?

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Solution Summary

The solution gives detailed steps on performing a hypothesis tesing for population proportion using the example of Eagle Outfitters. All 5-steps, formula and calculations are shown and explained.