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Mathematics, 20.02.2020 17:54 jesussanchez1445

In the book Essentials of Marketing Research, William R. Dillon, Thomas J. Madden, and Neil H. Firtle discuss a research proposal in which a telephone company wants to determine whether the appeal of a new security system varies between homeowners and renters. Independent samples of 140 homeowners and 60 renters are randomly selected. Each respondent views a TV pilot in which a test ad for the new security system is embedded twice. Afterward, each respondent is interviewed to find out whether he or she would purchase the security system.

Results show that 25 out of the 140 homeowners definitely would buy the security system, while 9 out of the 60 renters definitely would buy the system.

Letting p1 be the proportion of homeowners who would buy the security system, and letting p2 be the proportion of renters who would buy the security system, set up the null and alternative hypotheses needed to determine whether the proportion of homeowners who would buy the security system differs from the proportion of renters who would buy the security system.

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