The marketing manager for an automobile manufacturer is interested in determining the proportion of new compact-car owners who would have purchased a knee airbag if it had been available for an additional cost of $300. The manager believes from previous information that the proportion is 0.30. Suppose that a survey of 200 new compact-car owners is selected and 79 indicate that they would have purchased the knee airbag. If you were to conduct a test to determine whether there is evidence that the proportion is different from 0.30 and decided not to reject the null hypothesis, what conclusion could you reach?

Question

Jenny

Business

4 February, 08:32

The marketing manager for an automobile manufacturer is interested in determining the proportion of new compact-car owners who would have purchased a knee airbag if it had been available for an additional cost of $300. The manager believes from previous information that the proportion is 0.30. Suppose that a survey of 200 new compact-car owners is selected and 79 indicate that they would have purchased the knee airbag. If you were to conduct a test to determine whether there is evidence that the proportion is different from 0.30 and decided not to reject the null hypothesis, what conclusion could you reach?

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Answers (1)

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Jerimiah Foley · Answer 1

After the result obtained through the hypothesis test, I have sufficient evidence to reject the null hypothesis.

Explanation:

The null hypothesis is the statement that two (or more) parameters have no relation to each other.

X = estimated proportion new cars owner tha purchase the knee airbag

Y = they would have purchased the knee airbag

Z = the new compact owners

X = Y/Z

Hypothesis

H0 = 0,30 (equal 30%. They would have purchased a knee airbag if it had been available)

H1≠0,30 (different to 30%. They would have purchased a knee airbag if it had been available)

Survey

Y=79

Z=200

X = 79 / 200

X=0,395 (39,5%. They would have purchased a knee airbag if it had been available)