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 123 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. 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, Ho, and the alternative hypothesis, H₁ . ▶
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 123 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. 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, Ho, and the alternative hypothesis, H₁ . ▶
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question

Transcribed Image Text: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 123 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. 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, Ho, and the alternative hypothesis, H₁ .
▶

Transcribed Image Text: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?
4
Determine the null hypothesis, Ho, and the alternative hypothesis, H₁.
OA. Ho: ≤0.20
H₁: >0.20
B. Ho: #0.20
H₁: = 0.20
Expert Solution

Step 1
Given
n = 500
X = 123
π= 20% = 0.20
We know that null hypothesis contains symbols like , ≤ , =, ≥
And alternative hypothesis contains symbols <,≠,>
Step by step
Solved in 2 steps

Recommended textbooks for you

MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc

Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning

MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc

Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning

Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning

Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON

The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman

Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman