ST2120 Streaming services such as Netflix, Amazon Prime and Apple TV are popular amongst students: Data science for business analytics II Assignment, UOG, Ireland

Question 3
Complete all parts (a) and (b).

(a). Streaming services such as Netflix, Amazon Prime and Apple TV are popular amongst students. To explore the rate of subscription at the University of Galway, 200 students were surveyed and asked whether they subscribed to a streaming service. Of the 200 students, 87 had exactly one such subscription. Carry out a suitable hypothesis test (at a significance level α = 0.05) to determine if there is evidence that more than 40% of University of Galway students subscribe to exactly one such streaming service, i.e test the hypothesis Ha : p > 0.4.

(b). The 87 subscribers were also asked which service they subscribed to (Netflix, Amazon Prime or Apple TV), giving the following summary counts:

Use the sample observations to test whether the population of the University of Galway students have an equal, versus unequal, distribution of proportions across these streaming services at a significance level of α = 0.1. Include statements of the null and alternative hypotheses being tested, in terms of p1; p2; p3, the population proportions for each of the three categories. Include your calculation of the value of the appropriate test statistic, the rejection region, and a conclusion.
(c). Amongst the 40 Netflix subscribers, 30 of these were on a one-month contract. Whilst, Among the 30 Amazon Prime subscribers, 25 were on a one-month contract. Calculate and interpret a 95% confidence interval for the difference p1 − p2, where p1 is the proportion of students with a standard Netflix subscription, and p2 is the proportion of students with a standard Amazon Prime subscription. Based on your confidence interval is there evidence for a significant difference between the two proportions? Explain your answer.