/*! This file is auto-generated */ .wp-block-button__link{color:#fff;background-color:#32373c;border-radius:9999px;box-shadow:none;text-decoration:none;padding:calc(.667em + 2px) calc(1.333em + 2px);font-size:1.125em}.wp-block-file__button{background:#32373c;color:#fff;text-decoration:none} Problem 10 A customer of a car workshop cla... [FREE SOLUTION] | 91Ó°ÊÓ

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A customer of a car workshop claimed that majority of customers were not satisfied with the services provided. In order to test this claim, officials in charge of the workshop delegated a third-party statistical company to administrate a satisfaction survey of its current customers. State the parameter of interest and the hypotheses for a significance test for testing this claim, where the alternative hypothesis will reflect the customer's claim.

Short Answer

Expert verified
The parameter of interest is the proportion of satisfied customers. Hypotheses: \( H_0: p \geq 0.5 \); \( H_a: p < 0.5 \).

Step by step solution

01

Identify the Parameter of Interest

The parameter of interest in this context is the proportion of customers who are satisfied with the services provided by the car workshop. We can denote this parameter by \( p \), where \( p \) represents the true proportion of satisfied customers.
02

Define the Null Hypothesis

The null hypothesis \( (H_0) \) is a statement that there is no effect or no difference. It is typically a statement of equality. In this case, it means that the majority of customers are satisfied. Mathematically, this can be expressed as \( H_0: p \geq 0.5 \), where \( 0.5 \) represents the majority threshold.
03

Define the Alternative Hypothesis

The alternative hypothesis \( (H_a) \) is what we want to provide evidence for, reflecting the customer's claim. The customer claims that the majority of customers are not satisfied. Therefore, the alternative hypothesis would be \( H_a: p < 0.5 \). This means the proportion of satisfied customers is less than the majority (0.5).

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Proportion
In the context of hypothesis testing, a proportion refers to a part or fraction of a whole that relates to a specific characteristic or category. When dealing with surveys or samples, the proportion represents the likelihood that an individual selected from the group exhibits a particular trait.
For example, in the given exercise regarding the car workshop, the proportion of interest is the number of customers satisfied with the service. Mathematically, this is denoted as \( p \). Here, \( p \) signifies the true proportion of all customers who are satisfied with the service. This parameter is crucial as it helps quantify what we are actually trying to measure or compare in the hypothesis test.
Null Hypothesis
The null hypothesis, denoted as \( H_0 \), is a fundamental concept in hypothesis testing. It represents a default or starting assumption that there is no effect, change, or difference concerning the characteristic being studied. It sets a baseline for comparison.
In many cases, such as our exercise, the null hypothesis is framed as an equality or a statement that nothing unusual or unexpected is happening. For the car workshop, the null hypothesis states that the majority of customers are satisfied, which is mathematically expressed as \( H_0: p \geq 0.5 \). This assumes that at least half (or more) of the customers are satisfied with their service experience.
Alternative Hypothesis
Contrasting with the null hypothesis, the alternative hypothesis, denoted as \( H_a \), proposes what we believe might be true based on the evidence available. It suggests that there is a significant effect, difference, or change, directly challenging the null hypothesis.
In the context of our car workshop example, the alternative hypothesis is reflective of the customer's claim—asserting that the majority of customers are not satisfied with the services. This can be mathematically expressed as \( H_a: p < 0.5 \), indicating that the true proportion of satisfied customers is less than half of the total customer base. Establishing the alternative hypothesis helps guide the direction of the test and determines what we are trying to find evidence for.
Significance Test
A significance test is a method used to determine whether the evidence present supports rejecting the null hypothesis in favor of the alternative hypothesis. It examines if the observed data can occur under the null hypothesis's assumptions.
The process involves the calculation of a test statistic that aligns with the hypothesis being tested. From there, a p-value is derived, which indicates the probability of observing data as extreme as the actual data if the null hypothesis were true. A smaller p-value suggests stronger evidence against the null hypothesis.
In our example, the significance test would assess whether the proportion of satisfied customers is significantly less than 0.5, supporting the alternative hypothesis. The outcome of this test will inform us if there is enough statistical evidence to adopt the customer's claim about the dissatisfaction of the majority. The level of significance (often set at 0.05) acts as a threshold to decide if a deviation from the null hypothesis is due to random chance or reflects a true difference.

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Most popular questions from this chapter

A marketing study conducts 60 significance tests about means and proportions for several groups. Of them, 3 tests are statistically significant at the 0.05 level. The study's final report stresses only the tests with significant results, not mentioning the other 57 tests. What is misleading about this?

Consider the test of \(\mathrm{H}_{0}:\) The defendant is not guilty against \(\mathrm{H}_{a}:\) The defendant is guilty. a. Explain, in context, the conclusion of the test if \(\mathrm{H}_{0}\) is rejected. b. Describe, in context, a Type I error. c. Explain, in context, the conclusion of the test if you fail to reject \(\mathrm{H}_{0}\) d. Describe, in context, a Type II error.

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