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
icon
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 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 <,≠,>

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
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 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…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
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
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman