Question
A cable company provided its subscribers with free access to a new sports channel for one month. It then took a SRS of 500 subscribers
A cable company provided its subscribers with free access to a new sports channel for one month. It then took a SRS of 500 subscribers and asked whether they would pay an extra $5 per month for continued access to the channel. Of these, only 62 indicated a willingness to pay. 5(a). The cable company sets out to determine whether it can conclude, at level 0.01, that more than 10% of all subscribers are willing to pay. Which of the following gives an interpretation of the p-value for the Score test of the implied hypotheses? A. The probability that 0: = 10% is true (and hence 1: > 10% is false) is 0.0368. B. The probability that 1: > 10% is true (and hence 0: = 10% is false) is 0.0736. C. If 1 were true (i.e., if were > 10%, not = 10%), then the prob would be 0.0368 of seeing a test stat 0 value so extreme (i.e., as indicative of 1: > 10% as observed 0 = 1.7889; i.e., test stat value 0 = 1.7889). D. If 0 were true (i.e., if were = 10%, not > 10%), then the prob would be 0.0368 of seeing a test stat 0 value so extreme (i.e., as indicative of 1: > 10% as observed 0 = 1.7889; i.e., test stat value 0 = 1.7889). E. If 0 were true (i.e., if were = 10%, not > 10%), then the prob would be 0.0736 of seeing a test stat 0 value so extreme (i.e., as indicative of 1: > 10% as observed 0 = 1.7889; i.e., test stat value 0 = 1.7889).
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