Recently, the number of airline companies that offer inflight WiFi service to passengers has increased. However, it is estimated that only 10% of the passengers who have WiFi available to them are willing to pay for it. Suppose Gogo, the largest provider of airline WiFi service, would like to test this hypothesis by randomly sampling 125 passengers and asking them if they would be willing to pay $ 4.95 for 90 minutes of onboard Internet access. Suppose that 20 passengers indicated they would use this service. Using σ = 0.05, answer the following questions:
a. Based on this sample, can we conclude that the proportion of airline passengers willing to pay for onboard Wi Fi service is different than 10%?
b. Determine the p value for this test.
c. Verify your results using PHStat.

  • CreatedJuly 17, 2015
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