Question

1. A music producer is interested in whether or not customers like an artist's new album. She sends out a survey asking several questions using a Likert Scale, which is a type of scale where 1 = Extremely dissatisfied, 2 = Dissatisfied, 3 = Neutral, 4 = Satisfied, and 5 = Extremely satisfied. She knows that if more than 60% of customers report that they are either Satisfied or Extremely satisfied with the record, that her company will consider the record a success. Her sample results come back and look very positive, and she decides to run a hypothesis test to see if they are statistically above the 60% threshold where the record company can say that customers like the record. She computes a Z score of 1.75.

   Are the customers satisfied with the record at the .05 level of Significance?

   What about the .01 level of Significance?

   		.05 Level = No! The results are not significant .01 Level = Yes! The results are significant
   		.05 Level = No! The results are not significant .01 Level = No! The results are not significant
   		.05 Level = Yes! The results are significant .01 Level = No! The results are not significant
   		.05 Level = Yes! The results are significant .01 Level = Yes! The results are significant

Answer 1

Solution :

This is the right tailed test .

P(z > 1.75) = 1 - P(z < 1.75) = 0.0401

At 5%

P-value < 0.05

Reject the null hypothesis

At 1%

P-value < 0.01

Reject the null hypothesis .

0.05 Level = Yes! The results are significant

0.01 Level = Yes! The results are significant