Exam 14: Tests of Hypotheses Based on Count Data

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A drug company wants to know whether the probability is really 0.20 that one of their products will produce side effects. In a random sample of 150 consumers of the product, 42 were victims of side effects. Conduct the two-tailed test. Use α=0.01\alpha=0.01 . State the hypothesis.

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The symbol x/nx / n represents a sample estimate of __________.

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A suntan lotion manufacturer wants to estimate the proportion of people who will get a tan by using their product. In a sample of 80 people, 50 were tanned by the product. Find a 98%98 \% confidence interval for the population proportion of people who will receive a tan from the lotion.

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