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 600 subscribers. The results indicate that 131 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 0.01 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.     A. H0​: π=0.20 H1​: π≠0.20   B. H0​: π≥0.20 H1​: π<0.20   C. H0​: π≤0.20 H1​: π>0.20   D. H0​: π≠0.20 H1​: π=

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
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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
600
subscribers. The results indicate that
131
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
0.01
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.
 
 
A.
H0​:
π=0.20
H1​:
π≠0.20
 
B.
H0​:
π≥0.20
H1​:
π<0.20
 
C.
H0​:
π≤0.20
H1​:
π>0.20
 
D.
H0​:
π≠0.20
H1​:
π=
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