Question

Question Two: ALL STEPS SHOULD BE FULLY SOLVED AND HAND WRITTEN, ALL DIAGRAMS REQUIRED AND FINAL ANSWER SHOULD BE UNDERLINED

Before shopping on-line became very popular with consumers a few years ago, 10% of retail outlets in Canada closed their doors each year (i.e., went out of business). A random sample of 200 retail outlets across Canada which were open at the beginning of 2019 were randomly selected for a study. At the end of 2019, 25 or these outlets were no longer open. At the .10 level of significance, is there sufficient evidence that the proportion of all Canadian retail outlets that closed in 2019 is greater than the proportion that closed before shopping on-line became very popular? In answering this question, complete the following in the spaces provided (including diagrams):

Hypotheses

Test statistic

Decision rule

p-value

Conclusion

Answer 1

Giveni Po = o. Lo n = 200 x = 25 - 25 200 P = 0.125 level of significance = 2 = 0.10 Hypothesis - POLO Vs H. Test statistics z = Poll-Po) P- Po 0.125 - 0-10 O. LOCl 0.2o) 20 O 0.02S 0.0212 Z 1. 1792 Decision rule' P-value P-value is less than or equal to then sa Reject Ho Poralue ! P-value = P(Z >Z) = P(Z) 1-1792)

P-value - 0.1192 = 0.1192 fom Poralue z-sable) Pralue=or1192 0 2= o.so conclusioni 0-1192 0.20 i-e P-value> x, then do not reject Ho Then there is not sufficient evidence to conclude that the proportion of all canadian retail outlets that cloved in 20g greater proportion that closed before shopping on-line became very popwar. than