Statistical Analysis and Evaluation

9


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

10


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.


Statistical Analysis and Evaluation

11


With the finding that our firm has brought before you, is it imperative that the
consortium accepts our null hypothesis evaluation and in turn, prevents committing a
type one error. A type one error occurs if you reject the null hypothesis when it is true it
should not be rejected. (Levine 278) 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 the Royal
16 Theatres 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.