Question

1.     Online magazines make it easy for readers to link to an advertiser’s website directly from an

advertisement. A recent survey indicated that 56% of online magazine readers have clicked on the advertisement. The survey was based on a sample size of 6,403. 

a.     Determine if there is evidence that more than half of the online readers have clicked on the advertisement at α = 0.05. You may use the p-value or critical value approach. 

b.     Now assume the sample size is 100. Repeat part (a).

c.     Discuss the effect that sample size has on hypothesis testing.

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Question

This question was created from Econ 214 DB 2.docx

Can anyone help me figure out the Economic Theory that relates to this?

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