ASSIGNMENT | What population parameter is the claim about?

Topic: Do you believe it?

Hypothesis testing typically begins with a theory, a claim, or an assertion about a particular parameter (mean, μ, or proportion, p) of a population.

The Federal Trade Commission (FTC) is an independent agency of the U.S. federal government charged with preventing unfair or deceptive trade practices. It regulates advertising, marketing, and consumer credit practices, and also prevents antitrust agreements and other unfair practices.

The FTC publishes press releases regularly about health and fitness claims athttps://www.ftc.gov/news-events/media-resources/truth-advertising/health-claims

Main Post: Find a claim about a product or service from one of the press releases listed in the FTC website. Read through these and select one of interest to you that has not been picked by anyone else yet in class. See

1) Summarize the advertising claim as shared in the media. What population parameter (mean, μ, or proportion, p) is the claim about?

2) If you were to formulate a hypothesis test about this product/service, what would your null and alternative hypothesis be? (Be sure to use all the correct notations for H0 and Ha)

3) State whether you have a one-tailed lower, one-tailed upper, or two-tailed test (Be sure you use the correct inequality signs).

SAMPLE SOLUTION

Do you believe it?
The selected advertising claim is the one made by FTC to Cory SEOM, who claimed to have essential oils including one that is a “Virus Killer Spray”. FTC identified that Cory was advertising on the social medial platforms and on the website that certain products can help treat the spread of COVID-19. The regulator noted that the public was being misled by Cory as there is no proven medication for the killer disease as claimed by the company. The warning letter argued that it is unlawful under the FTC Act, 15 U.S.C & 41 et seq to advertise the ability of a product to prevent, treat or entirely cure human diseases unless the marketer has competent and proven scientific backing with appropriate…