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# Statistical Significance Calculations

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Tourism is one consideration for CoffeeTime's future, A survey of 1,233 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? Explain.

https://brainmass.com/statistics/probability/statistical-significance-calculations-22895

#### Solution Preview

Hypothesized mean = 1233*0.1 = 123.3

n = 1233; p = 10% = 0.1; (1-p) = 0.9
Standard Deviation = SD = sqrt[n*p*(1-p)] = sqrt(1233*0.1*0.9) = ...

#### Solution Summary

This solution provides a step-by-step explanation of one can compute the hypothesized mean and then the observed mean and by comparing them arrive at a conclusion about statistical significance of an event.

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