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Since 1970, cigarette manufacturers have been required by law to put warning labels on pack of cigarettes. A person on the Federal Trade Commission is fearful that more than 80% of persons buying cigarettes have never noticed the warning label. In order to test this claim, a random sample of 400 cigarette purchasers are surveyed, and 340 claim they have never noticed the warning label.

a) Set up a hypothesis test to validate this claim.
b) Using a significance level of .01 to test this hypothesis, what is your decision rule?
c) find out the test statistic.
d) Interpret your results in the context of the problem

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Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M9105233

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