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In 1996, it was estimated that about 72 percent of all US households were cable TV subscribers. Newstime magazine's editors were sure that their readers subscribed to cable TV at a higher rate than the general population and wanted to use this fact to sell advertising space for premium cable channels. To verify this, they sampled 250 of Newstime's subscribers and found that 194 subscribed to cable TV. Test the editor's claim at a significance level of 2%.
Q. What is the p-value for the test?
Q. The appropriate conclusion is best given by?
a) There is sufficient evidence to conclude that the actual proportion of Newstime readers that subscribe to cable TV is higher than that in the general population.
b) There is sufficient evidence to conclude that the actual proportion of Newstime readers that subscribe to cable TV is lower than that in the general population.
c) There is insufficient evidence to conclude that the actual proportion of Newstime readers that subscribe to cable TV is lower than that in the general population.
d) There is insufficient evidence to conclude that the actual proportion of Newstime readers that subscribe to cable TV is higher than that in the general population
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