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Consumers’ use of discount coupons. In 1894, druggist Asa
Chapter 7, Problem 126SE(choose chapter or problem)
Consumers’ use of discount coupons. In 1894, druggist Asa Candler began distributing handwritten tickets to his customers for free glasses of Coca-Cola at his soda fountain. That was the genesis of the discount coupon. In 1975, it was estimated that 65% of U.S. consumers regularly used discount coupons when shopping. In a more recent consumer survey, 72% said they regularly redeem coupons (Prospectiv 2008 Consumer Coupon Poll). Assume the recent survey consisted of a random sample of 1,000 shoppers.
a. Does the survey provide sufficient evidence that the percentage of shoppers using cents-off coupons exceeds 65%? Test using \(\alpha\ =\ .05\).
b. Is the sample size large enough to use the inferential procedures presented in this section? Explain.
c. Find the observed significance level for the test you conducted in part a and interpret its value.
Questions & Answers
QUESTION:
Consumers’ use of discount coupons. In 1894, druggist Asa Candler began distributing handwritten tickets to his customers for free glasses of Coca-Cola at his soda fountain. That was the genesis of the discount coupon. In 1975, it was estimated that 65% of U.S. consumers regularly used discount coupons when shopping. In a more recent consumer survey, 72% said they regularly redeem coupons (Prospectiv 2008 Consumer Coupon Poll). Assume the recent survey consisted of a random sample of 1,000 shoppers.
a. Does the survey provide sufficient evidence that the percentage of shoppers using cents-off coupons exceeds 65%? Test using \(\alpha\ =\ .05\).
b. Is the sample size large enough to use the inferential procedures presented in this section? Explain.
c. Find the observed significance level for the test you conducted in part a and interpret its value.
ANSWER:Solution
Step 1 of 3
a) We have to provide the sufficient evidence that the percentage of shoppers using cents-off
Coupons exceeds 65%
Here the claim is that the percentage of shoppers using cents-off coupons exceeds 65%
Then the null hypothesis (q=0.35)
And the alternative hypothesis (Right tailed test)
From the consumer survey 72% they regularly redeem coupons
Then
And n=1000
The test statistic
=
=
=4.67
From the tables the rejection region for right tailed test at is 1.645
The rejection region is
Now the test statistic value 4.67>1.645
So, H0 is rejected
Hence there is sufficient evidence that the percentage of shoppers using cents-off coupons exceeds 65%