In: Statistics and Probability
Recently, the number of airline companies that offer in-flight Wi-Fi service to passengers has increased. However, it is estimated that only
8%of the passengers who have Wi-Fi available to them are willing to pay for it. Suppose the largest provider of airline Wi-Fi service, would like to test this hypothesis by randomly sampling 200 passengers and asking them if they would be willing to pay $4.95 for 90 minutes of onboard Internet access. Suppose that
26 passengers indicated they would use this service. Using α=0.050complete parts a and b below.
a. What conclusions can be drawn about the proportion of airline passengers willing to pay for onboard Wi-Fi service?
b.Determine the critical value(s) of the test statistic.
c.Calculate the test statistic.
d.Determine the p-value for this test.