A marketing analyst wants to determine whether mailed advertisements for a new product result in a response rate different from the national average. A random sample of 1000 households is chosen to receive advertisements. Of the 1000 households sampled, 87 make a purchase after receiving the advertisement.
The analyst performs a 1 proportion test to determine whether the proportion of households that made a purchase is different from the national average of 6.5%.
The null hypothesis states that the proportion of households that make a purchase equals 0.065. Because the p-value is 0.007, which is less than the significance level of 0.05, the analyst rejects the null hypothesis. The results indicate that the proportion of households that make a purchase is different from the national average of 6.5%.
N | Event | Sample p | 95% CI for p |
---|---|---|---|
1000 | 87 | 0.087000 | (0.070617, 0.106130) |
Null hypothesis | H₀: p = 0.065 |
---|---|
Alternative hypothesis | H₁: p ≠ 0.065 |
P-Value |
---|
0.007 |