9.5 Exercise 11

Suppose a consumer group suspects that the proportion of households that have three cell phones is 30 percent. A cell phone company has reason to believe that the proportion is not 30 percent. Before the cell phone company starts a big advertising campaign, it conducts a hypothesis test. The company's marketing people survey 150 households with the result that 43 of the households have three cell phones.

1. The value that helps determine the p-value is p′. Calculate p′.
2. What is a success for this problem?
3. What is the level of significance?
4. Draw the graph for this problem. Draw the horizontal axis. Label and shade appropriately.
   Calculate the p-value.
5. Make a decision. _____________(Reject/Do not reject) H₀ because____________.