Many hotel chains that offer free Wi- Fi service to their customers have experienced increasing demand for Internet bandwidth and increasing costs. Marriott International would like to test the hypothesis that the proportion of customers that are carrying two Wi- Fi devices exceeds 0.60. A random sample of 120 Marriott customers found that 78 have two Wi- Fi devices. Marriott International would like to set α = 0.01. The critical value for this hypothesis test would be -------.

Question

Quizplus · Accepted Answer

Given that Marriott International wants to test the hypothesis at a significance level of α = 0.01 for a one-tailed test (since they are testing if the proportion exceeds 0.60), the critical value corresponds to the z-score that cuts off the upper 1% of the normal distribution. The z-score that corresponds to this area in the upper tail of the standard normal distribution is approximately 2.33.

Many Hotel Chains That Offer Free Wi- Fi Service to Their