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 . ▶

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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 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 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. 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
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 <,≠,>

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