Question

Many hotel chains that offer free​ Wi-Fi service to their customers have experienced increasing demand for Internet bandwidth and increasing costs. Suppose that one such chain would like to test the hypothesis that the proportion of customers that are carrying two​ Wi-Fi devices exceeds 0.60. A random sample of 120 customers found that 78 have two​ Wi-Fi devices. The hotel chain would like to set alphaequals0.01. What is the correct hypothesis statement for this hypothesis​ test?

Answer 1

`H_(0)`: P=0.60

`H_(a)`: P>0.60

Explanation:

Hypothesis test requires to state a null hypothesis and an alternative hypothesis. The hypotheses are stated in such a way that they are mutually exclusive. That is, if one is true, the other must be false; and vice versa. Then sample data will be used to accept or reject the null hypothesis in a given significance level.

Let P be the true proportion of customers that are carrying two Wi-Fi devices.

We can state the null and alternative hypothesis as follows:

`H_(0)`: P=0.60

`H_(a)`: P>0.60

Before conducting the test, we need to check if n×0.06≥10

Since n=78 this condition holds, therefore we can apply the hypothesis test.