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    Statistics Significance Level for tourist visits to a small cafe in the Caribbean

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    Tourism is one consideration for a start up company in the Caribbean. A survey of 1,233 visits to the Caribbean last year revealed that 110 visited a small cafe during their visit. Bob claims that 10% of the tourists will include a visit to a cafe.

    Use a 0.05 significance level to test his claim. Would it be wise for him to use that claim in trying to convince management to increase their advertising spending to travel agents? Explain.

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    https://brainmass.com/statistics/statistics-significance-level-for-tourist-visits-to-a-small-cafe-in-the-caribbean-44761

    Solution Preview

    In this case the sample probability is p=110/1233=0.0892

    The sample error is given by
    S = Sqrt[(p)(1 - p)/n] =Sqrt[(0.0892)(1-0.0892)/1233]=0.008
    then compute t = (p-10%)/ S = (0.10 - 0.0892) / 0.008 = 1.35
    Since this is ...

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