Case study on multiples

1. Q2: Statistical Analysis for Sample Size of 100
In this case, Mr. Plex wanted to know whether he and consortium should consider
settlement with Tommy or whether they should rigorously defend any lawsuit by Tommy.
For this purpose, the law firm hired by Mr. Plex conducted a survey on 100 moviegoers and
found that only 6 respondents out of 100 surveyed agreed with Tommy and resented the ads.
Before reaching to any conclusion, the law firm applied a statistical test on the data collected
to come up with an authentic recommendation.
In this case, since the sample size is more than 30, the law firm has applied z test on the
collecged data. Below are the assumptions and calculations performed by the law firm:
Hypothesis:
- Ho: p ≥ 0.10 (Mr. Plex and consortium will seriously consider settlement)
- H1: p < 0.10 (Mr. Plex and consortium will rigorously defend any lawsuit by Tommy)
Analysis:
- For this case, we use 0.05 as the significance level
Analysis work
- P = 10% (percentage for which Mr. Plex and consortium considers to determine to
settle with Tommy)
- p = 6% (percentage of sample of those who agree with Tommy)
- n = 100 (Patrons)
𝑧 =
𝑝 − 𝑃
√
𝑃(1 − 𝑃)
𝑛

2. 𝑧 =
0.06 − 0.10
√
0.10(1 − 0.10)
100
𝑧 = −1.33
Therefore, probability of z value between 0 and -1.33 is 0.4082
Thus, p-value = 0.5000 - 0.4082 = 0.0918
Conclusion
Since p-value is greater than significance level of 0.05, our null hypothesis is
rejected, that is, Mr. Plex and consortium should not seriously consider settlement. It
means our alternative hypothesis is accepted which states that Mr. Plex and
consortium should rigorously defend any lawsuit by Tommy.
Thus, Mr. Plex and consortium should rigorously defend any lawsuit by Tommy