A new provider of ISDN internet access wants to decide whether to commence opera

Question

A new provider of ISDN internet access wants to decide whether to commence operations in PG County. It decides to do so only if the proportion of households in PG County that currently do not have high-speed internet access is significantly larger than the nation-wide average. The nation-wide average (for households that do not have high-speed internet access) is known to be 40%.

A survey of 200 randomly selected households in PG County revealed that 96 of them had no high-speed internet access.

1. State the (alternative) research hypotheses that must be proven by the internet provider in order to decide whether to commence operations in PG County.

i.   Ha: The proportion of households in PG County without high-speed internet is less than 48%

ii. Ha: The proportion of households in PG County without high-speed internet is larger than 48%

iii. Ha: The proportion of households in PG County without high-speed internet is different from 40%

iv. Ha: The proportion of households in PG County without high-speed internet is less than 40%

v. Ha: The proportion of households in PG County without high-speed internet is larger than 40%

Explanation / Answer

The proportion of households in PG County without high-speed internet is larger than 40% is correct hypothesis.

Because to decide whether we should start operation we should assume that what is require to start the operation. So, as we need the proportion of households in PG County that currently do not have high-speed internet access is significantly larger than the nation-wide average. So, we choose option v

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