Question

A magazine is considering the launch of an online edition. The magazine plans to go ahead only if it is convinced that more than 15​% of current readers would subscribe. The magazine contacted a simple random sample of 400 current​ subscribers, and 67 of those surveyed expressed interest. What should the company​ do? Test appropriate hypotheses and state your conclusion.

Answer 1

They should go on to launch the online edition

Explanation:

Total surveyed = 400

A = accept if 15% above subscribes

B = reject if subscribers are less than 15%

on the survey it is clearly stated that 67 expressed interest.

lets get 16% of total survey

= 15% x 400

= 60.

Since number of subscribers that showed interest is greater than number 15%

Hence the company can go ahead to launch the online edition

Accept A