Question

(6 points) McBeans magazine recently published a news article about caffeine consumption in universities that claims that 80% of people at universities drink coffee regularly. Moonbucks, a popular coffee chain, is interested in opening a new store on UBC campus. After reading McBeans' article, they will consider opening a store in UBC if more than 80% of the people in UBC drink coffee regularly. A random sample of people from UBC was taken, and it was found that 680 out of 810 survey participants considered themselves as regular coffee drinkers. Does Moonbucks' survey result provide sufficient evidence to support opening a store at UBC? Part i) What is the parameter of interest? A. Whether a person at UBC drinks coffee regularly. B. The proportion of all people at UBC that drink coffee regularly C. All people at UBC that drinks coffee regularly D. The proportion of people at UBC that drink coffee regularly out of the 810 surveyed. Part ii) Let p be the population proportion of people at UBC that drink coffee regularly. What are the null and alternative hypotheses? A. Null: p 0.84. Alternative: p > 0.84. B. Null: p 0.80. Alternative: p> 0.80 C. Null: p 0.84. Alternative: p # 0.84. D. Null: p 0.80. Alternative: p # 0.80 E. Null: p 0.80. Alternative: p = 0.84. F. Null: p 0.84. Alternative: p > 0.80. Part iii The P-value is found to be about 0.0025. Using all the information available to you, which of the following is/are correct? (check all that apply) A. Assuming the reported value 80% is correct, there is a 0.0025 probability that in a random sample of 810, at least 680 of the people at UBC regularly drink coffee. B. The observed proportion of people at UBC that drink coffee regularly is unusually low if the reported value 80% is incorrect. C. The observed proportion of people at UBC that drink coffee regularly is unusually low if the reported value 80% is correct D. Assuming the reported value 80% is incorrect, there is a 0.0025 probability that in a random sample of 810, at least 680 of the people at UBC regularly drink coffee E. The observed proportion of people at UBC that drink coffee regularly is unusually high if the reported value 80% is correct. F. The observed proportion of people at UBC that drink coffee regularly is unusually high if the reported value 80% is incorrect G. The reported value 80% must be false. Part iv) Based on the P-value (approximately 0.0025) obtained, at the 5% significance level,.. A. we should reject the null hypothesis B. we should not reject the null hypothesis

Answer 1

Given that : 810=n 680 = x P = x = 680 = 10.84 ] 810 part i Part is ] The null & Alternative hypothesis, Ho: P=0.80 Vs H.: P>0.80 Answer is ② - Part(iii) P-value =0.0025 22=0.05 we Reject the null by pothesis.. Answer is A Û f 7 Part 1 Reject the Null hypothesis. Part There is sufficient Evidance to Support opening a store at UB C. Part Answer is ③ L Part 1) Type I error only it