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Statistics - Hypothesis Testing Questions Responses

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1. In city D, 141 of the 300 randomly selected customers were aware of product; whereas in city O, 125 of 250 randomly selected consumers were aware of the product. Based on these data, the 95% margin of error is .084 or 8.4%.
a. form the 95% confidence interval of the difference in the two population proportions.
b. The alternative hypothesis is that there is a difference in the effectiveness of the two types of advertising campaigns; that is the levels of effectiveness are not equal. Based on these results, would you recommend or fail to reject the null hypothesis? Why

2. Nike administers an "aptitude test for production managers" at one of its productioil
facilities to aid in the selectioil of new production manager trainees. Prior experience
suggests 40% of all applicaiants for production management trainee positions would be
successful if they were hired. Furthennore, past experience with the aptitude test
indicates that 80% of applicants who turn out to be successful production managers pass
the test and 90% of applicaicants who turn out not to be successful production managers fail
the test. If an applicant passes the test, what is the probability that the applicant will
succeed in a production management position?

3.As a market researcher for Nike, you have distributed a questionnaire asking
companies to indicate whether they would be receptive to a Nike sales representative
coming to their business. Of the 250 responses you received, 100 indicated they would
be receptive, while 150 indicated they would not be receptive.
Calculate the 95% confidence interval for the proportion of businesses that would be
receptive to having a Nike sales representative come to their business.


Solution Summary

A number of examples using hypothesis testing and probabilities.