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

subscribers. The results indicate that

138

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

20%

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

a. At the

0.01

level of significance, is there evidence that more than

20%

of the customers would upgrade to a new cellphone at a reduced cost?Determine the null hypothesis,

H0,

and the alternative hypothesis,

H1.

A.

H0:

=0.20

H1:

0.20

B.

H0:

0.20

H1:

<0.20

C.

H0:

0.20

H1:

=0.20

D.

H0:

0.20

H1:

>0.20

What is the test statistic?

ZSTAT=nothing

(Type an integer or a decimal. Round to two decimal places as needed.)

What is the p-value?

The p-value is

nothing.

(Type an integer or a decimal. Round to three decimal places as needed.)

What is the final conclusion?

Reject

Do not reject

the null hypothesis. There

is not

is

sufficient evidence that the percentage of people who would upgrade to a new cellphone at a reduced cost is

greater than

different from

less than

20%.

b. How would the manager in charge of promotional programs concerning cellphone upgrades use the results in (a)?