Question

Suppose a national news agency reported that more than 88% of all households purchased at least...

Suppose a national news agency reported that more than 88% of all households purchased at least one item online last year. We wish to test this statement and randomly sample 200 households. When asked if they made any online purchases last year 180 reported “YES”. At the 0.05 level of significance, does the sample data support the statement made by the national news agency?

1. State the null and alternative hypotheses of interest. Ho ___________________________ HA ___________________________

2. What is the critical value of the test statistic at the α = 0.05 level of significance?

3. What is the calculated value of the test statistic computed from the sample data?

4. State your conclusion. Does the sample data support the statement made by the news agency?

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