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    Travel Feasibility

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    Tourism is one consideration for Coffee time's future. A survey of 1233 visitors to Mumbai last year revealed that 110 visited a small cafe during their visit. Laura claims that 10% of tourists will include a visit to a cafe. Use a 0.05 significance level to test her claim.

    Would it be wise for her to use that claim in trying to convince management to increase their advertising spending to travel agents? Why or why not?

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    Solution Preview

    Ho p=0.1,
    H1 P is not equal to 0.1
    standard error = (p*q/n)^0.5=(0.1*0.9/1233)^0.5=0.008543577
    z=(p obeserved - 0.1)/standard error = (110/1233-0.1)/0.008543577 =-1.26
    at 5%, the ...

    Solution Summary

    This solution provides a null hypothesis and alternative hypothesis to conduct a statistical analysis with a 0.05 significance level. It determines whether Laura should use her claim to convince management to increase their advertising spending.