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    Significance level testing: Paying Bills Online

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    Over the past few years, banks have strongly promoted online banking and the paying of bills online. In 2003, about 50% of internet users paid bills online. In a recent survey of 250 internet users, 150 said that they pay bills online. At the 5% level of significance, test whether the proportion of internet users paying bills online is now more than 50%.

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    Solution Preview

    The null hypothesis tested is
    H0: The proportion of internet users paying bills online ≤ 0.50. (p ≤ 0.50)
    The alternative hypothesis is
    H1: The proportion of internet users paying bills online > 0.50. (p > 0.50)
    The test statistic used is Z = (p - p0)/(sqr((po(1 - p0))/n) , where p = 150/250 = 0.60, p0 = 0.50, n = ...

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    Significance level testing: Paying Bills Online

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