A spokesperson for the National Association of Broadcasters (NAB) claims that 80% of all satellite radio subscribers have a satellite radio receiver in their car. Recall from Exercise, that in a June 2007 survey of 501 satellite radio subscribers, 396 had a satellite receiver in their car. Consider a test of the NAB spokesperson's claim.
a. Define the parameter of interest to the NAB spokes person.
b. Set up the null hypothesis for testing the claim.
c. Specify the alternative hypothesis if you believe that the spokesperson's claim is too high.
d. Compute the value of the test statistic.
e. Determine the rejection region for the test using α = .10.
f. Compute the p -value of the test.
g. Make the appropriate conclusion. Show that the decision based on the rejection region agrees with the decision based on the p -value.