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In each of the following examples, a test for the population proportion (p) is called for. You are asked to select the right null and alternative hypotheses.Scenario 1: The UCLA Internet Report (February 2003) estimated that roughly 8.7% of Internet users are extremely concerned about credit card fraud when buying online. Has that figure changed since? To test this, a random sample of 100 Internet users was chosen, and when interviewed, 10 said that they were extremely worried about credit card fraud when buying online. Let p be the proportion of all Internet users who are concerned about credit card fraud.The null hypothesis in this case is:H0: p = 8.7H0: p = 0.087H0: p = 0.10H0: p ≠ 0.087H0: p > 0.087The alternative hypothesis in this case is:Ha: p > 0.087Ha: p < 0.087Ha: p ≠ 0.087Ha: p = 0.087Reset this ActivityScenario 2: The UCLA Internet Report (February 2003) estimated that a proportion of roughly .75 of online homes are still using dial-up access, but claimed that the use of dial-up is declining. Is that really the case? To examine this, a follow-up study was conducted a year later in which out of a random sample of 1,308 households that had Internet access, 804 were connecting using a dial-up modem. Let p be the proportion of all U.S. Internet-using households that have dial-up access.The null hypothesis in this case is:H0: p = 0.75H0: p = 0.615H0: p < 0.75H0: p > 0.615The alternative hypothesis in this case is:Ha: p > 0.75Ha: p < 0.75Ha: p ≠ 0.75Ha: p < 0.615

Question

In each of the following examples, a test for the population proportion (p) is called for. You are asked to select the right null and alternative hypotheses.Scenario 1: The UCLA Internet Report (February 2003) estimated that roughly 8.7% of Internet users are extremely concerned about credit card fraud when buying online. Has that figure changed since? To test this, a random sample of 100 Internet users was chosen, and when interviewed, 10 said that they were extremely worried about credit card fraud when buying online. Let p be the proportion of all Internet users who are concerned about credit card fraud.The null hypothesis in this case is:H0: p = 8.7H0: p = 0.087H0: p = 0.10H0: p ≠ 0.087H0: p > 0.087The alternative hypothesis in this case is:Ha: p > 0.087Ha: p < 0.087Ha: p ≠ 0.087Ha: p = 0.087Reset this ActivityScenario 2: The UCLA Internet Report (February 2003) estimated that a proportion of roughly .75 of online homes are still using dial-up access, but claimed that the use of dial-up is declining. Is that really the case? To examine this, a follow-up study was conducted a year later in which out of a random sample of 1,308 households that had Internet access, 804 were connecting using a dial-up modem. Let p be the proportion of all U.S. Internet-using households that have dial-up access.The null hypothesis in this case is:H0: p = 0.75H0: p = 0.615H0: p < 0.75H0: p > 0.615The alternative hypothesis in this case is:Ha: p > 0.75Ha: p < 0.75Ha: p ≠ 0.75Ha: p < 0.615

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Solution

Scenario 1:

The null hypothesis in this case is: H0: p = 0.087

This is because the null hypothesis is always the status quo or the situation as it currently stands, which in this case is that 8.7% (or 0.087 when expressed as a proportion) of Internet users are extremely concerned about credit card fraud.

The alternative hypothesis in this case is: Ha: p ≠ 0.087

This is because the alternative hypothesis is what we are testing for. In this case, we are testing to see if the proportion of Internet users who are extremely concerned about credit card fraud has changed, i.e., it is not equal to 0.087.

Scenario 2:

The null hypothesis in this case is: H0: p = 0.75

Again, the null hypothesis is the status quo, which in this case is that 75% (or 0.75 when expressed as a proportion) of online homes are still using dial-up access.

The alternative hypothesis in this case is: Ha: p < 0.75

This is because the alternative hypothesis is what we are testing for. In this case, we are testing to see if the proportion of online homes that are still using dial-up access is declining, i.e., it is less than 0.75.

This problem has been solved

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