Reference no: EM132844686

Assume that according to a survey, a majority of Canadian households have tried to cut long-distance phone bills. Of those who have tried to cut the bills, 32% have done so by switching long-distance companies. Suppose business analyst believe that this figure may be higher today. To test this theory, an analyst conducts another survey by randomly contacting 95 Canadian households who have tried to cut long-distance phone bills. If 38% of the contacted households say they have tried to cut their long-distance phone bills by switching long-distance companies, is this result enough evidence to state that a significantly higher proportion of Canadian households are trying to  cut long-distance phone bills by switching companies? Let α = 0.01.

The value of the test statistic z is ?  and we reject the null hypothesis or fail to reject the null hypothesis ?