Demand for internet bandwidth and increasing costs

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Many hotel chains that offer free Wi-Fi service to their customers have experienced increasing demand for Internet bandwidth and increasing costs. Marriott International 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 Marriott customers found that 78 have two Wi-Fi devices.

Marriott International would like to set alpha= 0.05.

a) Perform a test to see whether the proportion exceeds 0.60. (The critical Z-scores for a left tail test is -1.645, for a right tail test is 1.645 and for a two tail test are -1.96 and 1.96.)

b) Confirm your answer using the p-value approach.

Reference no: EM131090387

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