A cellphone provider has the business objective of wanting to determine the proportion of subscribers who would upgrade to a new cellphone with improved features if it were made available at a substantially reduced cost. Data are collected from a random sample of 500 subscribers. The results indicate that 124 of the subscribers would upgrade to a new cellphone at a reduced cost. Reducing the price will be profitable if at least 20% of the subscribers would upgrade. Complete parts (a) and (b) below.
A cellphone provider has the business objective of wanting to determine the proportion of subscribers who would upgrade to a new cellphone with improved features if it were made available at a substantially reduced cost. Data are collected from a random sample of 500 subscribers. The results indicate that 124 of the subscribers would upgrade to a new cellphone at a reduced cost. Reducing the price will be profitable if at least 20% of the subscribers would upgrade. Complete parts (a) and (b) below.
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.6: Summarizing Categorical Data
Problem 26PPS
Related questions
Question
A cellphone provider has the business objective of wanting to determine the proportion of subscribers who would upgrade to a new cellphone with improved features if it were made available at a substantially reduced cost. Data are collected from a random sample of
500
subscribers. The results indicate that
124
of the subscribers would upgrade to a new cellphone at a reduced cost. Reducing the price will be profitable if at least
20%
of the subscribers would upgrade. Complete parts (a) and (b) below.Question content area bottom
Part 1
a. At the
0.05
level of significance, is there evidence that more than
20%
of the customers would upgrade to a new cellphone at a reduced cost?Determine the null hypothesis,
H0,
and the alternative hypothesis,
H1.
H0:
π≥0.20
H1:
π<0.20
H0:
π≠0.20
H1:
π=0.20
H0:
π≤0.20
H1:
π>0.20
H0:
π=0.20
H1:
π≠0.20
What is the test statistic?
ZSTAT=enter your response here
(Type an integer or a decimal. Round to two decimal places as needed.)Part 3
What is the p-value?
The p-value is
enter your response here.
(Type an integer or a decimal. Round to three decimal places as needed.)
Part 4
What is the final conclusion?
▼
Do not reject
Reject
▼
is not
is
▼
greater than
different from
less than
20%.
Part 5
b. How would the manager in charge of promotional programs concerning cellphone upgrades use the results in (a)?
The manager
suggest reducing the price.
▼
should not
should
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 2 images
Recommended textbooks for you
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Glencoe Algebra 1, Student Edition, 9780079039897…
Algebra
ISBN:
9780079039897
Author:
Carter
Publisher:
McGraw Hill
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Algebra: Structure And Method, Book 1
Algebra
ISBN:
9780395977224
Author:
Richard G. Brown, Mary P. Dolciani, Robert H. Sorgenfrey, William L. Cole
Publisher:
McDougal Littell
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt