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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 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.

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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
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.
 
 
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≠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
the null hypothesis. There
▼
 
is not
is
sufficient evidence that the percentage of people who would upgrade to a new cellphone at a reduced cost 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
▼
 
should not
should
suggest reducing the price.
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