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Satellite radio in cars. A spokesperson for the National
Chapter 7, Problem 70E(choose chapter or problem)
Problem 70E
Satellite radio in cars. A spokesperson for the National Association of Broadcasters (NAB) claims that 80% of all satellite radio subscribers have a satellite radio receiver in their car. That in a June 2007 survey of 501 satellite radio subscribers, 396 had a satellite receiver in their car. Consider a test of the NAB spokesperson’s claim.
a. Define the parameter of interest to the NAB spokesperson.
b. Set up the null hypothesis for testing the claim.
c. Specify the alternative hypothesis if you believe that the spokesperson’s claim is too high.
d. Compute the value of the test statistic.
e. Determine the rejection region for the test using α =.10.
f. Compute the p -value of the test.
g. Make the appropriate conclusion. Show that the decision based on the rejection region agrees with the decision based on the p -value.
Satellite radio in cars. A recent survey conducted for the National Association of Broadcasters investigated satellite radio subscriber service and usage. The June 2007 survey, conducted by Wilson Research Strategies, consisted of a random sample of 501 satellite radio subscribers. One of the questions of interest was, “Do you have a satellite radio receiver in your car?” The survey found that 396 subscribers did, in fact, have a satellite receiver in their car.
a. Identify the population of interest to the National Association of Broadcasters.
b. Based on the survey question, what is the variable of interest?
c. Does the variable produce quantitative or qualitative data?
d. Describe that sample of interest.
e. What inference can be made from the survey results?
Questions & Answers
QUESTION:
Problem 70E
Satellite radio in cars. A spokesperson for the National Association of Broadcasters (NAB) claims that 80% of all satellite radio subscribers have a satellite radio receiver in their car. That in a June 2007 survey of 501 satellite radio subscribers, 396 had a satellite receiver in their car. Consider a test of the NAB spokesperson’s claim.
a. Define the parameter of interest to the NAB spokesperson.
b. Set up the null hypothesis for testing the claim.
c. Specify the alternative hypothesis if you believe that the spokesperson’s claim is too high.
d. Compute the value of the test statistic.
e. Determine the rejection region for the test using α =.10.
f. Compute the p -value of the test.
g. Make the appropriate conclusion. Show that the decision based on the rejection region agrees with the decision based on the p -value.
Satellite radio in cars. A recent survey conducted for the National Association of Broadcasters investigated satellite radio subscriber service and usage. The June 2007 survey, conducted by Wilson Research Strategies, consisted of a random sample of 501 satellite radio subscribers. One of the questions of interest was, “Do you have a satellite radio receiver in your car?” The survey found that 396 subscribers did, in fact, have a satellite receiver in their car.
a. Identify the population of interest to the National Association of Broadcasters.
b. Based on the survey question, what is the variable of interest?
c. Does the variable produce quantitative or qualitative data?
d. Describe that sample of interest.
e. What inference can be made from the survey results?
ANSWER:Solution
Step 1 of 7
a) We have to define the parameter of interest to the NAB spokesperson
Here no.of satellite radio subscribers is 501
396 has a satellite receiver in their cars
Then p = true proportion of satellite radio subscribers who have a satellite receiver in their cars
=396/501
=0.79