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# Statistics Problem: Are Visa's new ads successful?

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A) Use the six-step critical value approach to hypothesis testing and a 0.05 level of significance to try to prove that the new Visa ad is less successful than a typical television advertisement.

B) Use the five-step p-value approach to hypothesis testing and a 0.05 level of significance to try to prove that the new Visa ad is less successful than a typical television advertisement.

C) Compare the results of (a) and (b).

#### Solution Preview

A) Step 1: Ho: p>=0.21
Ha: p<0.21
Step 2: The significance level is 0.05.
The degree of freedom is 903-1=902.
Step 3: Since np=903*0.21>5, n(1-p)>5, we could use normal distribution to solve this question.
step 4: At 0.05 significance level, since it is one tailed z test, the critical value -s -1.65.
...

#### Solution Summary

The expert determines whether Visa's new ads are successful.

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