A store manager is considering to promote a new product by s

A store manager is considering to promote a new product by selling it at a discount, but he is willing to do so only if the proportion of shoppers who made at least one discount is at most 70%. Using a random sample of 441 shoppers, test whether the proportion is at most 70%. Clearly state the null hypothesis and its alternative, the test statistic you calculated, the critical value you used, and provide a conclusion. Assume = 0:05.

Solution

Null hypothesis: Proportion of shoppers who made atleast one discount is at most 70%

Alternate Hypothesis : Proportion of shoppers who made atleast one discount is more than 70%

Level of significance = 0.05

If we consider one tailed test then Z= 1.645

test statstics

kindly provide in a sample of 441 shoppers how many made discount in order to carry out the test.