Question

1. A company hopes to improve customer satisfaction, setting a goal of less than 5% negative comments. A random survey of 850 customers found only 34 with complaints. Does this provide evidence at the 10% significance level that the company has reached its goal of decreasing the percentage of complaints?

Answer 1

This Problem is solved by using Minitab

step 1 : Path - stat -basic statistics - 1 proportion

step 2 : number of event = 34

Number of trial = 850

Hypothesis proportion = 0.05

confidence interval = 90.00

Output

Decision Rule : we reject Ho if P-value < 0.10

Conclusion :Here P-value is 0.103 > 0.10 so we accept H0 that is A company does not improve customer satisfaction of setting a goal of less than 5% negative comments.

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