Question 2 According to the February 2008 Federal Trade Commission report on con

Question

Question 2 According to the February 2008 Federal Trade Commission report on consumer fraud and identity theft, 23% of all complaints in 2007 were for identity theft. In that year, Alaska had 321 complaints of identity theft out of 1,432 consumer complaints (Consumer fraud and," 2008). Does this data provide enough evidence to show that Alaska had a lower proportion of identity theft than 23%? Test at the significance level of 1%. Match the type land type II errors in this case, consequences of each error type for this situation, and appropriate alpha level to use with their correct determinations (not all determinations will be used!). Type I error Type I error consequence Type ll error consequence Type II error Correct level of significance ("alpha level") a to use for test 1. p

Explanation / Answer

321 complaints of identity theft out of 1432 customers complaint; which is (321/1432)*100% = 22.42% and the hypothesized percentage is 23%, So, the deviation is not too much in fact very small which implies Alaska did not have lower proportion of identity theft than 23%.

Type I Error - 2

Type I Error Consequence - 3

Type II Error - 1

Type II Error Consequence - 4

Correct level of significance "alpha" to be used for the test - 0.01 (7)

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