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Signifance Level and Hypothesis Testing

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Last year, television station WXYZ's share of the 10 P.M. news audience was approximately equal to, but not greater than, 25%. The station's management believes (and would like to claim for advertising purposes) that the current share is higher than last year's 25% share. In an attempt to substantiate this claim, the station surveyed a random sample of 400 news viewers and found that 146 watched WXYZ news. At the .01 level of significance, do you believe the station's claim to be correct?

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Solution Summary

This solution looks at hypothesis testing: does a larger percentage of people watch the 10 PM news at a particular TV station?

Solution Preview

Please see the attached file.

The sample size: n = 400.
The proportion of the news audience watching WXYZ: p = ...

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