Question

To help retain its readership base in the digital era, a magazine is considering the launch of an online edition. However, it will only be feasible to publish an online edition if more than 35% of current readers would subscribe to the online edition. The magazine contacted a simple random sample of 587 current readers, of which 227 said they would be interested in the online edition. Conduct a hypothesis test to help the magazine decide if it should launch the online edition or not.

Answer 1

Hо:p = 0.35

H1:p > 0.35

Explanation:

The magazine wants to check if the the proportion of readers interested in the online edition is equal to 35% (0.35) or greater than 35% (>0.35). Denote by p, the proportion of readers interested in the online edition. Then the null hypothesis,the hypothesis that contains equal-to sign- will be Hо:p = 0.35 and the alternative hypothesis will be H1:p > 0.35.