Monica A.

asked • 08/01/19

Statistics question Hypothesis Tests for Proportions

Cable TV choices: A telecommunications company provided its cable TV subscribers with free access to a new sports channel for a period of one month. It then chose a sample of 400 television viewers and asked them whether they would be willing to pay an extra $10 per month to continue to access the channel. A total of 25 of the 400 replied that they would be willing to pay. The marketing director of the company claims that more than 5% of all its subscribers would pay for the channel. Can you conclude that the director’s claim is true? Use the α = 0.01 level of significance.

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