Basic Marketing Research 8th Edition by Tom Brown,Tracy Suter,Gilbert Churchill

Exercise 7

For the last several years, the company has been sending gift cards for meals in local restaurants to doctors who regularly refer their patients to the fitness center for therapy. Managers have noticed that most of the people who join AFC are not referred by physicians, and they are considering whether or not the doctor referral incentives are worth the added expense. They have decided to discontinue the program unless there is evidence that at least 25 percent of their members learn about AFC from their doctors. Use the binomial test to compare the sample proportion of members who reported learning about AFC from their doctors against the standard proposed by AFC managers (that is, 25 percent). Should the referral incentive program be discontinued