Statistical Analysis and Evaluation

Shoshone Strategies and Advisements have performed a random sample survey of 100
moviegoers to determine how many moviegoers agree with the complainant. This sample
consists of viewers from a selection of theaters, involved in the consortium. Those surveyed
were of various age groups, families, couples, singles (male and female), and types of movies
viewed. The key question in the survey was asking whether the viewers saw the showing of
commercials prior to the feature tolerable.
The purpose of the survey was to identify whether or not ten percent, or greater, of the
population of moviegoers agrees with the complainant in the case, if one shall arise. After
tabulating the data collected in the survey, it has been concluded that 94 of the 100 respondents
found the commercials tolerable. With a total of 100 respondents, it can be concluded that the
tabulated data approximately represents a standardized normal distribution of the population.
The central limit theorem states:
As the sample size (i.e., the number of values in each sample) gets large enough,
the sampling distribution of the mean is approximately normally distributed. This
is true regardless of the shape of the distribution of the individual values in the
population. (Levine 224)

94%
6%
Moviegoer Sample Proportion
Yes
No
Statistical Analysis and Evaluation



Using the tabulated data our firm was able to create a hypothesis test of the proportion.
One must use the Z-test for the proportion to perform the hypothesis test for the difference
between the sample proportion and the hypothesized population proportion (Levine 298). This
allowed our firm to create a null hypothesis which asks, Does greater than 90% of the mean of
the moviegoer population find it acceptable to view commercials prior to the feature?
To test this hypothesis our firm created a 90 percent confidence interval using the critical
value approach. These critical values are represented by Z-scores. This approach required the
use of a Z-score of 1.645 from the mean (average). The Z-scores are used to help determine
outliers in an evaluation. If a test statistic falls outside of the Z-score of 1.645, it is considered
an outlier, and our null hypothesis can be accepted.
Determining a test statistic to be evaluated required the use of a Z-stat. The Z-stat
represents where the proportion of moviegoers fall into the population standardized normal
distribution. Once the Z-stat has been determined it can then be applied to the normal
distribution model to verify whether our proportion is an outlier. Our evaluated Z-stat equated to
1.33 which falls in between our Z-scores of 1.645. Therefore, the alternative hypothesis
which states less than 90% of the moviegoer population finds it acceptable to view commercials
prior to the feature, can be rejected.
With the finding that our firm has brought before you, is it imperative that the consortium
accepts our null hypothesis evaluation and in turn preventing a type one error. A type on e error
occurs if you reject the null hypothesis when it is true it should not be rejected. (levine 278)

Statistical Analysis and Evaluation



Furthermore in response to your third question, if we were to advise you to reject the null
hypothesis when it was false and you choose not too you would be committing a type two error.
In response to question 4, once more than 120 individuals are surveyed the results can be
considered a normal distribution of the population. Therefore, if we were to have surveyed 300
people the Z-stat of the proportion would be the same as our current Z-stat result, providing a
reassuring sign to accept the null hypothesis.
The findings in the statistical analysis are concrete proof in confirming your initial
expectations of less than 10 percent of the population agreeing with the complainant. Therefore,
it can be said that any reasonably minded person expect to see or tolerates the viewing of
commercials prior to the feature presentation.