Question

# A telecommunications company reported that 30% of mobile phone users exceed their data plan allocation. Suppose...

A telecommunications company reported that 30% of mobile phone users exceed their data plan allocation. Suppose that you are a data analyst in the company and you want to verify the above claim. You have selected a random sample of 200 customers and you want to determine the likelihood that more than 40% of the customers are exceeding the data allocation of their contract.

Although you are not given a Z-stat table, show with your calculations whether it is likely to observe a proportion of at least 40% of customers exceeding their data allocation. Explain your answer.

 here population proportion=     p= 0.300 sample size       =n= 200 std error of proportion=σp=√(p*(1-p)/n)= 0.0324

proportion of at least 40% of customers exceeding their data allocation:

 probability = P(X>0.4) = P(Z>3.09)= 1-P(Z<3.09)= 1-0.9990= 0.001

as probability of  of at least 40% of customers exceeding their data allocation is significantly small,, therefore it is not likely event.

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