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Mathematics, 05.05.2020 23:10 burnsmykala23
The CEO of a large electric utility claims that 80 percent of his 1,000,000 customers are very satisfied with the service they receive. To test this claim, the local newspaper surveyed 100 customers, using simple random sampling. They are interested in seeing if this number over or under estimates the level of satisfaction. Among the sampled customers, 73 percent say they are very satisfied. Based on these findings, can we reject the CEO’s hypothesis that 80% of the customers are very satisfied?
1.Conduct a hypothesis test and calculate a 95% confidence interval for the estimate.
2. Suppose the question is slightly modified. If the CEO claims that at least 80 percent of the company’s 1,000,000 customers are very satisfied. Again, 100 customers are surveyed using simple random sampling. The result: 73 percent are very satisfied. Based on these results, should we accept or reject the CEO’s hypothesis?
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