Question

Question One

A market research company examines the relationship between wine consumption and whether a person likes to watch professional tennis on television. One hundred randomly selected people are asked whether they drink wine and whether they watch tennis. The following results are obtained:

	Watch tennis	Do not watch tennis	Totals
Drink wine	16	24	40
Do not drink wine	4	56	60
Totals	20	80	100

1) What is the appropriate test for this problem?

2) Set up the null and alternative hypotheses.

3) Write the formula of the test statistic.

4) Calculate the test statistic based on the formula.

5) Use Excel to calculate the p-value. Should we reject the null hypothesis at 5% significance level?

6) Given the results of the test, does it make sense to advertise wine during a televised tennis match (assuming that the ratings for the tennis match are high enough)? Explain.

Answer 1