Question

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 412 televisionviewers and asked them whether they would be willing to pay. The marketing director of the company claims that the percentage of all of its subscribers who would pay for the channel differs from 6%. Can you conclude that the director's claim is true? Use alpha=0.01 level of significance and the critical value method.

State the null and the alternate hyphothese

Answer 1

We need to test if the percentage of all of its subscribers who would pay for the channel differs from 6% so our hypotheses will be:

Ho: p = 0.06

Ha: p 0.06