document.write( "Question 1121208: Churn” is the term use to describe the rate at which a company losses customers to its competitors.
\n" ); document.write( "In the communications industry it is believed that the churn rate between cell phone service
\n" ); document.write( "providers is more than 15 %. A telecommunications analyst surveyed a random sample of 560 cell
\n" ); document.write( "phone subscribers and established that 96 of them had changed service providers within the last
\n" ); document.write( "year.
\n" ); document.write( "3.1) Formulate a suitable null and alternative hypothesis for this situation
\n" ); document.write( "3.2) Select and compute the appropriate sample/test statistic
\n" ); document.write( "3.3) Formulate the decision rule by using α = 1 %
\n" ); document.write( "3.4) What can the communications industry learn from the outcome of this test ? \n" ); document.write( "
Algebra.Com's Answer #737016 by Boreal(15235)\"\" \"About 
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Ho: rate is 15% (>15% would not be wrong, but a two way test is more stringent.)
\n" ); document.write( "Ha: rate Not 15%
\n" ); document.write( "alpha=0.01
\n" ); document.write( "test statistic is a one sample proportion
\n" ); document.write( "critical value is |z|>2.576
\n" ); document.write( "calculation is (p hat-p)/sqrt (.15*.85/560), p hat= 96/560=0.171
\n" ); document.write( "(0.021)/0.0150=1.43
\n" ); document.write( "fail to reject. The rate may be 15%. Perhaps a larger sample size might show a difference. \n" ); document.write( "
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