A telecommunications company provides its cable TV subscribers with free access

Question

A telecommunications company provides its cable TV subscribers with free access to a new sports channel for a period of 1 month. It then chose a sample of 390 television viewers and asked them whether they would be willing to pay an extra $10 per month to continue to access the channel. A total of 30 of the 390 replied that they would be willing to pay. The marketing director of the company claims that more than 6% of all its subscribers would pay for the channel. Can you conclude that the directors claim is true? Use the a = 0.10 level of significance and the P value method with the table.

State the null and alternate hypotheses.

and

The hypothesis is a ___________ (left tailed, right tailed, two tailed)

Explanation / Answer

It is an right tailed, since The marketing director of the company claims that more than 6% of all its subscribers would pay for the channel.

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