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A marketing manager of a well-known women's clothing line has noticed that the sales of bootcut jeans were sluggish and therefore he suggested...
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a. A marketing manager of a well-known women’s clothing line has noticed that the sales of bootcut jeans were sluggish
and therefore he suggested discontinuing production of bootcut jeans if the sales were less than 10% of the total
quantity of jeans sold over the past six months. A sample of 800 jeans sold during the past six months showed that 72 of them were bootcut jeans. If we wish to test if
there is sufficient evidence to discontinue production of bootcut jeans, what assumption do you need to make to
conduct the hypothesis test? b. “If the 95% confidence interval contains the hypothesised parameter, then a hypothesis test at the 0.05 level will almost
always reject the null hypothesis in a two-tailed test”. Do you agree with this statement? Explain. c. Over the last few years the organising committee of the carnival kept a record of the number of visitors who purchase a
showbag. The records show that 60% of visitors purchase a showbag. What method of assigning probabilities is used in
this case? Explain.

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