Churn rate in the telecommunications industry

Assignment Help Basic Statistics

Reference no: EM13990401

'Churn' is a term used to describe the rate at which a company loses customers to its competitors. In the telecommunications industry, it is believed that the churn rate between cellphone service providers (e.g. Vodacom, MTN, Virgin Mobile, 8.ta and Cell C) is not more than 15%.

A telecommunications analyst surveyed a random sample of 560 cellphone subscribers and found that 96 of them had changed service provider within the past year.

(a) Is there sufficient statistical evidence at the 10% significance level to conclude that the churn rate in the telecommunications industry exceeds 15%? Perform a hypothesis test for a single proportion and report the findings.

(b) Use the NORMSDIST function in Excel to compute the p-value for the test. Interpret the findings for the telecommunications analyst.

Reference no: EM13990401

Questions Cloud

Why was the feudalism in japan : Why was the Feudalism in japan similar to feudalism in western Europe?

What is pestel analysis : Write a report on Macro & Micro Environmental Analyses of Sony EnterprisesI) Overview of the purpose of the report and an outline of contentII) Examine why Sony should undertake formal marketing auditing and marketing planning. Provide reasons.

What maximum angle will the second bob rise : The first bob has mass 0.25 kg and the second has mass 0.85 kg. The first bob is drawn back to a 35 degree angle with the vertical, and then released such that it swings down and collides with the other bob. To what maximum angle will the second bo..

Which alternative lease or purchase would you recommend : Which alternative lease or purchase would you recommend? Why? Find the present value of the after tax cash outflows for each alternative using the after tax cost of debt.

Churn rate in the telecommunications industry : Is there sufficient statistical evidence at the 10% significance level to conclude that the churn rate in the telecommunications industry exceeds 15%? Perform a hypothesis test for a single proportion and report the findings.

The new federal sentencing guidelines implemented : The new federal sentencing guidelines implemented as part of Sarbanes-Oxley: A. Applies both to individual board members and the corporation itself B. Assigns specific oversight responsibilities to directors C. Are designed to give management immunit..

Recall how people reacted to the black death : 1) Recall how people reacted to the Black death, and the legacy of that disease on European society. We live on the same planet in the midst of the same "mother nature". How are we vulnerable, and how would our society cope with an cataclysmic diseas..

The nature of work and jobs is changing : For many individuals, the nature of work and jobs is changing. Describe the changes you are currently going through (or went through for your job) and the reasons why. How are you accepting the changes (or how did you accept the changes)?

To what extent were climate and disease key factors : To what extent were climate and disease key factors in producing economic and social change in Medieval Europe? Do natural conditions have a similar impact in the world today? Have we 'conquered' nature?

User Account

All Pages