A market research company claims that 25% of all customers to a department store visit the shoe department. Suppose a department store conducts its own survey and finds that 79 out of 384 customers visit the shoe department.
-Set up the appropriate hypotheses to test whether the claim made by the market research company is true.

Question

A market research company claims that 25% of all customers to a department store visit the shoe department. Suppose a department store conducts its own survey and finds that 79 out of 384 customers visit the shoe department. -Set up the appropriate hypotheses to test whether the claim made by the market research company is true. A)H₀: p ≤ .210 vs H_A: p > .210 B)H₀: p ≥ .250 vs H_A: p < .250 C)H₀: p ≤ .250 vs H_A: p > .250 D)H₀: p = .250 vs H_A: p ≠ .250 E)H₀: p ≠ .250 vs H_A: p = .250

Quizplus · Accepted Answer

The correct setup for testing the claim that 25% of customers visit the shoe department is to have the null hypothesis state that the proportion is equal to 25% (p = .250) and the alternative hypothesis state that the proportion is not equal to 25% (p ≠ .250). This allows for testing if the actual proportion deviates in either direction from the claimed proportion.

A Market Research Company Claims That 25% of All Customers