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Audience Based on Significance Levels

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For many years TV executives used the guideline that 30 percent of the audience were watching each of the prime-time networks and 10 percent were watching cable stations on a weekday night. A random sample of 500 viewers in the Tampa-St. Petersburg, Florida, area last Monday night showed that 165 homes were tuned in to the ABC affiliate, 140 to the CBS affiliate, 125 to the NBC affiliate, and the remainder were viewing a cable station. At the .05 significance level, can we conclude that the guideline is still reasonable?

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Solution Summary

This solution determines whether a guideline determining the audience size of different TV networks was reasonable based on a 0.5 significance level.

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Solution:

Hypothesis:

H0: The guideline is still reasonable
H1: The guideline is not still ...

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