(a) Explain what is meant by a ‘significance test’ and give an example of how significance testing could be used in business decision-making.
(b) In a simple random sample of 500 households in Glasgow, 25 per cent stated that they would be interested in participating in a car-sharing scheme. In a similar survey of 400 households in Manchester, 30 per cent expressed an interest in participating in such a scheme. To test whether the difference between the two sample results is statistically significant, you are required to:
(i) State the appropriate null and alternative hypotheses for your test.
(ii) Find the critical value of z for a two-tailed test at the 5% level.
(iii) Calculate the test statistic and interpret the result.
For a custom-written paper on the above topic, place your order now!
What We Offer
• On-time delivery guarantee
• PhD-level professionals
• Automatic plagiarism check
• 100% money-back guarantee
• 100% Privacy and Confidentiality
• High Quality custom-written papers