Purchase Solution

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

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution

Solution Summary

The solution gives the formulas and solves the problem, but then offers a solution which would be better suited for the facts.

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 ...

Purchase this Solution


Free BrainMass Quizzes
Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.