SOLUTION: A telephone company estimate that 30% of its customers are interested in high speed interest services. To test this estimate, a random sample of 100 customers was selected and the

Algebra ->  Probability-and-statistics -> SOLUTION: A telephone company estimate that 30% of its customers are interested in high speed interest services. To test this estimate, a random sample of 100 customers was selected and the       Log On


   

Question 748200: A telephone company estimate that 30% of its customers are interested in high speed interest services. To test this estimate, a random sample of 100 customers was selected and the results showered that 25 were interested in high speed internet service. Can it be concluded that the percentage of customers interested in high speed internet service is different from 30%? Formulate and test the appropriate hypotheses at a 5% significance level. Use the critical value approach.
Answer by reviewermath(1029) About Me  (Show Source):
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Null Hypothesis: p = 0.3
Alternative Hypothesis: p ≠ 0.3
Sample proportion: 25/100 = 0.25
Test Statistic, z = %280.25+-+0.3%29%2Fsqrt%280.3%280.7%29%2F100%29+ = -1.0911
Critical z: ±1.96
Fail to Reject the Null Hypothesis because the test value is between the lower and upper critical values.
Sample does not provide enough evidence to reject the claim that 30% of its customers are interested in high speed internet services.