Math Problem Statement

The JKL company takes people on wilderness trips into Northern Canada in winter. A random sample of 3361 customers were asked if they found the experience 'worth the cost' or 'not worth the cost'. The results were: 60% said 'YES' and 40% said 'NO'. Use these results to test the claim that at least 70% of all customers are likely to be customers again because the experience was worth the cost to them. (Let alpha = 20% for this test.)

Solution

I see you've uploaded an image containing a hypothesis testing problem for a scenario regarding a wilderness trip company's customer survey. I'll help you work through the details step-by-step.

Problem Overview:

  • Claim: At least 70% of all customers found the experience "worth the cost."
  • Sample: 3,361 customers surveyed, where:
    • 2,017 said "YES" (60%),
    • 1,344 said "NO" (40%).
  • Alpha: 20% significance level (α=0.20\alpha = 0.20).
  • Test whether the proportion of customers who said "YES" supports the claim that at least 70% of customers are satisfied.

Step-by-Step Solution:

1. Define Hypotheses:

  • Null Hypothesis (H0H_0): p0.70p \geq 0.70 (The population proportion of "YES" is at least 70%.)
  • Alternative Hypothesis (HaH_a): p<0.70p < 0.70 (The population proportion of "YES" is less than 70%.)

2. Significance Level:

  • α=0.20\alpha = 0.20.

3. Test Type:

  • One-tailed (Left-tailed test).

4. Calculate Sample Proportion:

p^=Number of "YES"Total Surveyed=201733610.6004\hat{p} = \frac{\text{Number of "YES"}}{\text{Total Surveyed}} = \frac{2017}{3361} \approx 0.6004

5. Standard Error:

The standard error (SESE) for a proportion is given by: SE=p0(1p0)nSE = \sqrt{\frac{p_0 (1 - p_0)}{n}} Substituting p0=0.70p_0 = 0.70 and n=3361n = 3361: SE=0.700.3033610.0089SE = \sqrt{\frac{0.70 \cdot 0.30}{3361}} \approx 0.0089

6. Test Statistic (z):

The z-score formula is: z=p^p0SEz = \frac{\hat{p} - p_0}{SE} Substituting the values: z=0.60040.700.008911.17z = \frac{0.6004 - 0.70}{0.0089} \approx -11.17

7. Critical Value (z-critical):

For a left-tailed test with α=0.20\alpha = 0.20:

  • zcritical0.84z_{\text{critical}} \approx -0.84 (from z-tables).

8. Decision Rule:

  • Reject H0H_0 if zz is less than zcriticalz_{\text{critical}}.

Here, z=11.17z = -11.17 is much smaller than zcritical=0.84z_{\text{critical}} = -0.84.

9. Conclusion:

  • Reject H0H_0. There is strong evidence to suggest that less than 70% of all customers believe the experience is worth the cost.

Final Report for Your Template:

  • Claim: At least 70% of customers found the experience worth the cost.
  • H0H_0: p0.70p \geq 0.70
  • HaH_a: p<0.70p < 0.70
  • Alpha (α\alpha): 0.20
  • Tail: Left-tailed test
  • Critical Value: zcritical=0.84z_{\text{critical}} = -0.84
  • Test Statistic: z=11.17z = -11.17
  • Decision: Reject H0H_0
  • Conclusion: The data does not support the claim that at least 70% of customers found the experience worth the cost.

Would you like me to fill out specific parts of this worksheet or clarify any part of the process?


Relative Questions:

  1. How would the conclusion change if the alpha value was lowered to 0.05?
  2. How do you interpret a z-score of -11.17 in the context of this test?
  3. What Excel functions could be used to calculate the z-score and critical values automatically?
  4. How does increasing the sample size affect the standard error and test outcome?
  5. Could this hypothesis test be conducted using a confidence interval approach? If so, how?

Tip: Always visualize the critical region and sample statistics on a normal curve to better understand hypothesis testing outcomes!

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Math Problem Analysis

Mathematical Concepts

Hypothesis Testing
Proportion Testing
Statistical Significance

Formulas

Sample proportion: p̂ = x/n
Standard error for proportion: SE = sqrt(p0 * (1 - p0) / n)
z-test statistic: z = (p̂ - p0) / SE

Theorems

Central Limit Theorem
Properties of z-distribution

Suitable Grade Level

Undergraduate Statistics or Advanced High School Statistics