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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.

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 ...

#### Solution Summary

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

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