Prior to the Start of the Season, It Was Expected

question 47

Essay

Prior to the start of the season, it was expected that audience proportions for the four major news networks would be CBS 18.6%, NBC 12.5%, ABC 28.9% and BBC 40%. A recent sample of homes yielded the following viewing audience data. We want to determine whether or not the recent sample supports the expectations of the number of homes of the viewing audience of the four networks.
a.State the null and alternative hypotheses to be tested.
b.Compute the test statistic.
c.The null hypothesis is to be tested at 95% confidence. Determine the critical value for this test.
d.What do you conclude?

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Definitions:

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers, resulting in market equilibrium.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit.

Marginal Cost

The extra expense associated with the production of an additional unit of a product or service.

Equilibrium Price

A market condition's price point where the quantity of goods producers wish to sell equals the quantity consumers wish to buy.