What is your decision rule

Reference no: EM1397399

Since 1970, cigarette manufacturers have been required by law to put warning labels on pack of cigarettes. A person on the Federal Trade Commission is fearful that more than 80% of persons buying cigarettes have never noticed the warning label. In order to test this claim, a random sample of 400 cigarette purchasers are surveyed, and 340 claim they have never noticed the warning label.

a) Set up a hypothesis test to validate this claim.

b) Using a significance level of .01 to test this hypothesis, what is your decision rule?

c) Calculate the test statistic.

d) Interpret your results in the context of the problem

Reference no: EM1397399

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