Question

A magazine is considering the launch of an online edition. The magazine plans to go ahead if it is convinced that more than 25% of the current readers would subscribe. The magazine contacted a random sample of 200 current subscribers and 60 of those surveyed expressed interest. Should the magazine launch the online edition, if the chosen level of significance is 5%? Show your work. What is the p-value?

Answer 1

z= 1.63

From z table 1.63 corresponds to 0.9484

So our P value is 1-0.9484

As z table shows the value of p(Z<=z)

But we need to find the probability of 1.63 standard deviation above the mean.

P(z>z) = 1-p(z<z)

So p value is 0.0516

As the p value is greater than 0.05,

So we fail to reject the null hypothesis