A Survey Claims That 7 Out of 10 Customers Recommend

question 16

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.
State your conclusion using α = 0.05.

• A)The null hypothesis is not supported: more than 70% of customers recommend Western Drugs for pharmacy issues.
• B)The null hypothesis is not supported: less than 70% of customers recommend Western Drugs for pharmacy issues.
• C)The null hypothesis is not supported: the percentage of customers who recommend Western Drugs for pharmacy issues is not equal to 75%.
• D)More information is required to draw a valid conclusion
• E)The null hypothesis is supported: 70% of customers recommend Western Drugs for pharmacy issues.

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Definitions:

Sherman Act

A foundational antitrust law in the United States, enacted in 1890, aimed at preventing monopolistic practices and promoting competition.

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at promoting competition and preventing monopolies by prohibiting certain practices that could lead to anti-competitive behavior.

Federal Labor Law

Laws established by the federal government to regulate the relationship between employees, employers, and unions.

Closed Shops

describes workplaces that require employees to be members of a specific labor union both before and during their employment, a practice now largely illegal in the U.S.