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 600

600 subscribers. The results indicate that 138

138 of the subscribers would upgrade to a new cellphone at a reduced cost. Reducing the price will be profitable if at least 20 %

20% of the subscribers would upgrade. Complete parts(a) and(b) below.

A, At the 0.01 level ofsignificance, is there evidence that more than 20 %

of the customers would upgrade to a new cellphone at a reducedcost?

Determine the nullhypothesis, Upper H 0, and the alternativehypothesis, Upper H 1

What is the test statistic? Zstat=?

P-value is ?

What is your final conclusion ?

B, Whether the manager should or should not suggest reducing the price?