A telecommunications company provided its cable tv subscribers with free access to a new channel for a month. It then chose a sample of 700 viewers and asked them whether they would be willing to pay an extra $10 per month to continue access to the channel. Total of 33 replied that they would be willing to pay. The marketing director of the company claims that more than 5% of all its subscribers would be willing to pay. Can you conclude that the directors claim is true? Use 0.01 level of significance.

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter9: Sequences, Probability And Counting Theory
Section9.5: Counting Principles
Problem 3SE: Answer the following questions. 3. When given two separate events, how do we know whether to apply...
icon
Related questions
icon
Concept explainers
Topic Video
Question
A telecommunications company provided its cable tv subscribers with free access to a new channel for a month. It then chose a sample of 700 viewers and asked them whether they would be willing to pay an extra $10 per month to continue access to the channel. Total of 33 replied that they would be willing to pay. The marketing director of the company claims that more than 5% of all its subscribers would be willing to pay. Can you conclude that the directors claim is true? Use 0.01 level of significance.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Application of Algebra
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
College Algebra
College Algebra
Algebra
ISBN:
9781938168383
Author:
Jay Abramson
Publisher:
OpenStax
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Big Ideas Math A Bridge To Success Algebra 1: Stu…
Algebra
ISBN:
9781680331141
Author:
HOUGHTON MIFFLIN HARCOURT
Publisher:
Houghton Mifflin Harcourt
Holt Mcdougal Larson Pre-algebra: Student Edition…
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL