Suppose a consumer group suspects that the proportion of households that have three cell phones is 30%. A cell phone company has reason to believe that the proportion is not 30%. Before they start a big advertising campaign, they conduct a hypothesis test. Their marketing people survey 150 households with the result that 43 of the households have three cell phones.
a. The value that helps determine the p-value is p′. Calculate p′.
b. What is a success for this problem?
c. What is the level of significance?
d. Draw the graph for this problem. Draw the horizontal axis. Label and shade appropriately.
Calculate the p-value.
e. Make a decision. _____________(Reject/Do not reject) H0 because____________.