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October 30, 2014

October 30, 2014

Posted by **Lyndsey Horton** on Monday, March 24, 2008 at 4:23pm.

Commercials

Suppose that a commercial is run once on television, once on the radio, and once in a newspaper. The advertising agency believes that any potential consumer has a 20% chance of seeing the add on television, a 20% chance of hearing it on the radio, and a 20% chance of reading it in the newspaper. In a telephone survey of 800 consumers, the number claiming to have been exposed to the ad 0, 1, 2 or 3 times are as follows.

0 1 2 3

Observed number of people: 434 329 35 2

At the 1% significance level, test the null hypothesis that the number of times any consumer saw the add follows a binomial distribution with P(success) = .2

Hint: P(0) = (.8)(.8)(.8) = .512; P(1) = (3)(.2)(.8)(.8); P(2) = (3)(.2)(.2)(.8); P(3) = (.2)(.2)(.2)

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