Statistics

PROBLEM 2
A company hopes to improve customer satisfaction, setting as a goal “less than 5% negative comments”. A random survey of 350 customers found only 10 with complaints. Does this provide evidence that the company has reached its goal? Use a 5% level of significance.

EXPECTATIONS
- Draw graphs and charts when appropriate and necessary to demonstrate your reasoning! Label all graphs and charts!
- Display formulas. Write complete sentences to summarize your conclusions.
- If use any table values, clearly state which tables you used (e.g. Table A-2, etc.).
-Attach excel output when appropriate or necessary (e.g. a scatterplot, etc.)

HYPOTHESIS TESTING QUESTIONS
Your work for all statistical hypothesis testing questions should include the following:
1. Established Ho and Ha.
2. Summary statistics (either computed or given in the problem)
3. The name of the test (e.g. 2sampleTtest or T-test about correlation, etc.)
4. A formula to compute a test statistic (e.g. 1Prop-Z test statistic, etc.)
5. A p-value of the test and/or a critical value from a statistical table.
6. Clearly state the decision rule you use the reach a conclusion. (You may have to sketch a graph to show rejection regions.) Do you “Reject Ho” or do you “Fail to Reject Ho”?
7. State your conclusion in plain language. Use complete sentences.