Answer:
a. The test statistic is 2 and we conclude that the new ad campaign is not signficantly better.
Step-by-step explanation:
They used to be able to sell to 50% of those who saw their ads. Test if the new campaign is better.
At the null hypothesis, we test is it is the same, that is, the proportion is the same.
![H_0: p = 0.5](https://tex.z-dn.net/?f=H_0%3A%20p%20%3D%200.5)
At the alternate hypothesis, we test if it is significantly better, that is, the proportion is above 50%.
![H_1: p > 0.5](https://tex.z-dn.net/?f=H_1%3A%20p%20%3E%200.5)
The test statistic is:
![z = \frac{X - \mu}{\frac{\sigma}{\sqrt{n}}}](https://tex.z-dn.net/?f=z%20%3D%20%5Cfrac%7BX%20-%20%5Cmu%7D%7B%5Cfrac%7B%5Csigma%7D%7B%5Csqrt%7Bn%7D%7D%7D)
In which X is the sample mean,
is the value tested at the null hypothesis,
is the standard deviation and n is the size of the sample.
0.5 is tested at the null hypothesis:
This means that ![\mu = 0.5, \sigma = \sqrt{0.5*0.5} = 0.5](https://tex.z-dn.net/?f=%5Cmu%20%3D%200.5%2C%20%5Csigma%20%3D%20%5Csqrt%7B0.5%2A0.5%7D%20%3D%200.5)
They take a random sample of 100 potential buyers and find that they convinced 60 of these people to buy their product.
This means that ![n = 100, X = \frac{60}{100} = 0.6](https://tex.z-dn.net/?f=n%20%3D%20100%2C%20X%20%3D%20%5Cfrac%7B60%7D%7B100%7D%20%3D%200.6)
Test statistic:
![z = \frac{X - \mu}{\frac{\sigma}{\sqrt{n}}}](https://tex.z-dn.net/?f=z%20%3D%20%5Cfrac%7BX%20-%20%5Cmu%7D%7B%5Cfrac%7B%5Csigma%7D%7B%5Csqrt%7Bn%7D%7D%7D)
![z = \frac{0.6 - 0.5}{\frac{0.5}{\sqrt{100}}}](https://tex.z-dn.net/?f=z%20%3D%20%5Cfrac%7B0.6%20-%200.5%7D%7B%5Cfrac%7B0.5%7D%7B%5Csqrt%7B100%7D%7D%7D)
![z = 2](https://tex.z-dn.net/?f=z%20%3D%202)
The test statistic is 2.
P-value of the test and decision:
The p-value of the test is the probability of finding a sample proportion above 0.6, which is 1 subtracted the by p-value of z = 2.
Looking at the z-table, z = 2 has a p-value of 0.9772.
1 - 0.9772 = 0.0228.
The p-value of the test is 0.0228 > 0.01, which means that we cannot conclude that the new ad campaign is signficantly better, so the correct answer is given by option A.