Recently, the number of airline companies that offer in-flight Wi-Fi service to passengers has increased. However, it is estimated that only 10% of the passengers who have Wi-Fi available to them are willing to pay for it. Suppose Gogo, the largest provider of airline Wi-Fi service, would like to test this hypothesis by randomly sampling 125 passengers and asking them if they would be willing to pay $4.95 for 90 minutes of onboard Internet access. Twenty passengers indicated they would. Using α = 0.05, anwer the following questions: a. Based on this sample, can we conclude that the proportion of airline passengers willing to pay for onboard Wi-Fi service is different than 10%? b. Determine the p-value for this test.

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Estimation

A new framework of data analysis where the new statistical methods are used for interpreting the results and analyzing the data is known as estimation in statistics.