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Hypothesis Testing by the Wall Street Journal

The wall street journal reported 28% of people who bank online have cut back on their internet use. A credit union's manager is certain that while internet use may be down, it is much less than 28% of its customers. They are convinced that at most 10% of their customers have reduced their internet banking transactions. the credit unions IT dept analyzed 200 randomly selected accounts and determined that 24 indicated internet banking had either been reduced or stopped entirely.

1: State the appropriate null and alternative hypothesis for this situation.

2: Using the desired significant level is 0.05 and the p value approach indicate whether the sample data support the manager's contention.

Solution Preview

Null hypothesis:
H0: P=0.28
Alternative hypothesis:
H1: p≠0.28
Level of significance:
α = 0.05 ...

Solution Summary

Hypothesis testing by the Wall Street Journal is analyzed in the following solution. A null and alternative hypothesis for people who bank online cutting back on their internet use is given. A 0.05 level of significant level and a p-value approach is analyzed.