Ricky Rice is planning on releasing a new song called "How'd I get here?" Ricky's marketing advisor is considering to use an internet or radio campaign to promote the new song. After testing the radio campaign in New York City the marketing advisor found that out of 200 people surveyed, 154 were aware of RIcky's single. After testing the internet campaign in another city the advisor discovered that out of 300 people surveyed, 210 were aware of the song. Based on this data, test the effectiveness of both radio and internet mediums and decide whether they are equally strong for generating awareness at a significance level of 0.05. If they are equally good for awareness, the advisor wants to run the internet campaign. How should they proceed? Very that the test statistic being used is appropriate by checking that the sample size is large enough.
Answer each of these steps for full credit:
- Setup Ho and Ha.
- Identify the nature of the sampling distribution curve and specify the appropriate test statistic.
- Determine if the hypothesis test is one or two tailed.
- Take specified significance level into account and determine the critical value (two for a two tailed test) for the test statistic from the appropriate statistical table.
- State the decision rule for rejecting Ho.
- Compute the observed value for the test statistic from the sample data.
- Using the specified decision rule either reject or fail to reject Ho.