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A television network is deciding whether or not to give its newest television show a spot during prime viewing time at night. For this to happen, it will have to move one of its most viewed shows to another slot. The network conducts a survey asking its viewers which show they would rather watch. The network will keep its current lineup of shows unless the majority of the customers want to watch the new show. The network receives 827 responses, of which 428 indicate that they would like to see the new show in the lineup.

c. At α=0.01\alpha=0.01, what should the television network do?

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Considering this task we know that hypotheses look like this:

H0:p0.50HA:p>0.50\begin{aligned} H_0&:p\leq0.50\\ H_A&:p>0.50 \end{aligned}

From the previous problem, we know that the pp- value is 0.16350.1635.

We need to calculate at α=0.01α = 0.01, what should the television network do, i.e. should your most-watched show be given a place at night?

Is this value of pp enough for us to reject the null hypothesis in favor of the alternative? What is the relationship between significance level and pp− value in that case?

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