A constant question for social media is if it is a profitable business. A key determinant of profit is the average revenue per user (ARPU). Social media platforms like Facebook and Snapchat usually report their ARPU in their quarterly earnings statements. The worldwide ARPU for Snapchat in the second quarter of 2017 was $1.05. You have been hired to evaluate the future earnings potential of Snapchat. If the worldwide ARPU is higher than $1.50 you will conclude that Snapchat has the potential to become profitable. The Excel file labeled Snapchat.xlsx contains the quarterly revenue from a random sample of 65 Snapchat users. Using α = 0.05, answer the following:

a. State the null and alternative hypotheses.

b. Based on this sample, what recommendations will you provide Vodafone?

c. Determine the precise p-value for this test using Excel.