A Survey Claims That 7 Out of 10 Customers Recommend

question 23

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:

Consensus

General agreement among the members of a group or community, often achieved through cooperative discussion without any significant opposition.

Small Coalition

A minimal grouping of individuals or entities that unites to pursue a specific goal or interest.

Groupthink

A psychological phenomenon where the desire for harmony or conformity in a group leads to irrational or dysfunctional decision-making outcomes.

Critical Evaluator

A role in decision-making that involves rigorously assessing information, arguments, and outcomes.