Many limousines now offer the latest in high-tech gadgets. DVD players, satellit

Question

Many limousines now offer the latest in high-tech gadgets. DVD players, satellite radio, and wireless Internet connections are some of the high-priced accessories. Suppose Boston Coach will install wireless Internet in all of its vehicles if more than 75% of all clients desire this service. A random sample of clients will be selected, and the resulting information will be used to test the relevant hypothesis. Let p represent the proportion of all clients who would like wireless Internet in a limousine. State the null and alternative hypotheses in terms of p.

Explanation / Answer

p represents the proportion of all clients who would like wireless internet in a limousine.

given Boston Coach will install wireless internet in all of its vehicles if more than 75% of all clients desire the services

Therefore null hypothesis Ho : p = 0.75

Alternate Hypothesis H1 : p > 0.75

This is right tailed test.

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