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Part 1

Recently, the number of airline companies that offer in-flight Wi-Fi service to passengers has increased. However, it is estimated that only

8%

of the passengers who have Wi-Fi available to them are willing to pay for it. Suppose the largest provider of airline Wi-Fi service, would like to test this hypothesis by randomly sampling

100

passengers and asking them if they would be willing to pay $4.95 for 90 minutes of onboard Internet access. Suppose that

6

passengers indicated they would use this service. Using

=0.05,

complete parts a and b below.

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Part 1

a. What conclusions can be drawn about the proportion of airline passengers willing to pay for onboard Wi-Fi service?

Determine the null and alternative hypotheses. Choose the correct answer below.

A.

H0:

p0.08

H1:

p>0.08

B.

H0:

p=0.08

H1:

p0.08

C.

H0:

p0.08

H1:

p<0.08

D.

H0:

p>0.08

H1:

p0.08

Part 2

Determine the critical value(s) of the test statistic.

z=enter your response here

(Use a comma to separate answers as needed. Round to

two

decimal places as needed.)

Part 3

Calculate the test statistic.

zp=enter your response here

(Round to two decimal places as needed.)

Part 4

Determine the proper conclusion. Choose the correct answer below.

A.

Reject

H0,

and conclude that the proportion of airline passengers willing to pay for onboard Wi-Fi service

couldbe

8%.

B.

Reject

H0,

and conclude that the proportion of airline passengers willing to pay for onboard Wi-Fi service

isnot

8%.

C.

Donotreject

H0,

and conclude that the proportion of airline passengers willing to pay for onboard Wi-Fi service

couldbe

8%.

D.

Donotreject

H0,

and conclude that the proportion of airline passengers willing to pay for onboard Wi-Fi service

isnot

8%.

Part 5

b. Determine the p-value for this test.

p-value=enter your response here

(Round to three decimal places as needed.)