Julia S.

# Statistics question Hypothesis tests for Proportions

A telecommunications company provided its cable TV subscribers with free access to a new sports channel for a period of one month. If 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 access the channel. A total of 25 out 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 𝛼𝛼 = 0.01 level of significance. a) State the hypothesis b) Critical Value 𝑡 𝑜r 𝑧 c) Test 𝑡 𝑜r 𝑧 d) Decision: e) Conclusion

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