Exercise 9-69 Static (Round all intermediate calculations to at least 4 decimal

Question

Exercise 9-69 Static

(Round all intermediate calculations to at least 4 decimal places.)

New research shows that many banks are unwittingly training their online customers to take risks with their passwords and other sensitive account information, leaving them more vulnerable to fraud (Yahoo.com, July 23, 2008). Even web-savvy surfers could find themselves the victims of identity theft because they have been conditioned to ignore potential signs about whether the banking site they are visiting is real or a bogus site served up by hackers. Researchers at the University of Michigan found design flaws in 78% of the 214 U.S. financial institution websites they studied. Is the above sample evidence sufficient to conclude that more than three out of four financial institutions that offer online banking facilities are prone to fraud? Use a 5% significance level for the test. Use Table 1.

Select the null and the alternative hypotheses.

Calculate the sample proportion. (Round your answer to 2 decimal places.)

Calculate the value of test statistic. (Round your answer to 2 decimal places.)

The p-value is: (Round p-value to 4 decimal places.)

What is the conclusion?

(Round all intermediate calculations to at least 4 decimal places.)

New research shows that many banks are unwittingly training their online customers to take risks with their passwords and other sensitive account information, leaving them more vulnerable to fraud (Yahoo.com, July 23, 2008). Even web-savvy surfers could find themselves the victims of identity theft because they have been conditioned to ignore potential signs about whether the banking site they are visiting is real or a bogus site served up by hackers. Researchers at the University of Michigan found design flaws in 78% of the 214 U.S. financial institution websites they studied. Is the above sample evidence sufficient to conclude that more than three out of four financial institutions that offer online banking facilities are prone to fraud? Use a 5% significance level for the test. Use Table 1.

Explanation / Answer

The statistical software output for this problem is:

One sample proportion summary hypothesis test:
p : Proportion of successes
H0 : p = 0.75
HA : p > 0.75

Hypothesis test results:

Hence,

a) Hypotheses: H0: p 0.75; HA: p > 0.75

Option B is correct.

b) Sample proportion = 0.78

c) Test statistic = 1.01

d) p-value 0.10

e) Do not reject H0; the claim is not supported by the data. Option D

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