1. Major television networks have never seemed to have issuesshowing commercials for beer and other alcoholic beverages. Eventhough adult viewers tend to enjoy the commercials, most adultsseem to think that the commercials target teenagers and youngadults (those under 21 years old). To study this belief, thenetworks conducted a joint poll of viewers and asked them if theyfelt that beer and other alcoholic beverage commercials targetedteenagers and young adults. The results of the survey are asfollows
Network Advertising Survey Age Group Number Surveyed Number of "Yes"Responses 30 or Younger 1000 450 Older than 30 1000 655 |
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a. Are the sample sizes large enough such that inferences aboutthe differences between two population proportion can be made? Ifso, calculate a 99% confidence interval for the difference in theproportions of those older than 30 and those 30 or younger thatbelieve alcoholic beverage commercials targeted teenagers and youngadults. Interpret the interval.
b. Based on the data, can the networks conclude that thepercentage of viewers who believe beer and alcoholic beveragecommercials target teenagers and young adults is significantlyhigher in the over 30 age group than in the 30 or younger agegroup? Construct the 10 steps of hypothesis testing using ? = 0.01to answer the question.
Step 1 (Define the hypotheses to be tested inplain English)
Step 2 (Select the appropriate statisticalmeasure, such as the population mean, proportion, or
variance.)
Step 3 (Determine whether the alternativehypothesis should be one-sided or two-sided.)
Step 4 (State the hypotheses using thestatistical measure found in Step 2)
Step 5 (Specify ?, the level of the test.)
Step 6 (Select the appropriate test statisticbased on the information at hand and the
assumptions you willing to make.)
Step 7 (Determine the critical value of thetest statistic.)
Step 8 (Collect sample data and compute thevalue of the test statistic.)
Step 9 (Make the decision.)
Step 10 (State the conclusion in terms of theoriginal question.)
