A Survey Claims That 7 Out of 10 Customers Recommend

question 3

Multiple Choice

A survey claims that 7 out of 10 customers recommend Western Drugs for pharmacy issues.To test this claim, a random sample of 100 customers is obtained from the list of rewards customers.Of these 100 customers, 75 indicate that they recommend using Western Drugs for pharmacy needs.We would like to know if this claim is accurate.The null and alternative hypotheses are:

• A)H₀: p = 0.70 and H_A: p ≠ 0.70
• B)H₀: p = 0.70 and H_A: p > 0.75
• C)H₀ : p = 0.70 and H_A : p < 0.70
• D)H₀ : p ≠ 0.70 and H_A : p = 0.70
• E)H₀ : p = 0.75 and H_A : p ≠ 0.75

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Definitions:

Firm's Profits

The financial gains a company makes after subtracting all its costs from its total revenues.

Capital Goods

Long-lasting goods acquired by businesses to produce goods or services and not intended for immediate sale.

Savings Market

The financial market where savings are channeled from individuals or entities with surplus funds to those who need funds for investment.

Investment

The allocation of resources, such as capital or time, in the expectation of generating an income or profit.