Determine the proportion of subscribers

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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 112 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.

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, H0?, and the alternative? hypothesis, a1.

What is the test statistic?

What is the P-Value?

Reference no: EM132911093

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