Do 400 of 1000 sales signal a favourite plan
Question
A streaming service sells three subscription plans , and . Among its first sales, were plan . Does this show customers prefer plan (i.e. its share exceeds one third)? Reply for yes, for no.
Short answer
(yes). Under equal preference , the standard error of is , so . The one-sided p-value is a few in a million, so equal preference is rejected.
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Open the worked solutionLessons behind this question
- Maximum Likelihood Estimation: Score and Log-Likelihood
- Populations, Samples, and Sampling Distributions
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