Question: During this pandemic, a study found that the need for internet subscriptions has been increased in demand. An internet operator has the business objective of

During this pandemic, a study found that the need for internet subscriptions has been increased in demand. An internet operator has the business objective of wanting to determine the proportion of subscribers who would upgrade to a new data plan with additional benefits if it were available at a substantially reduced cost. Data are collected from a random sample of 500 subscribers. The results indicate that 135 subscribers would upgrade to a new data plan at a reduced cost.

(i) Test using p-value approach, is there sufficient evidence that more than 20% of the customers would upgrade to a new data plan at a reduced cost using = 0.05?

(ii) How would the manager in charge of promotional programs concerning residential customers use the results in Q(i)?

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