According to a recent poll, 74 out of 250 randomly selected U.S. adults interviewed said hey would not be bothered if corporations collected records of their activity on the nternet. Is there sufficient evidence to conclude that more than one quarter of U.S. adults feel this way? Test the appropriate hypotheses using a 0.01 significance level, round your test statistic to four decimal places, and round everything else to 1 decimal places. Follow the seven-step process.

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According to a recent poll, 74 out of 250 randomly selected U.S. adults interviewed said
they would not be bothered if corporations collected records of their activity on the
internet.
Is there sufficient evidence to conclude that more than one quarter of U.S. adults feel this
way? Test the appropriate hypotheses using a 0.01 significance level, round your test
statistic to four decimal places, and round everything else to 1 decimal places.
Follow the seven-step process.
Transcribed Image Text:According to a recent poll, 74 out of 250 randomly selected U.S. adults interviewed said they would not be bothered if corporations collected records of their activity on the internet. Is there sufficient evidence to conclude that more than one quarter of U.S. adults feel this way? Test the appropriate hypotheses using a 0.01 significance level, round your test statistic to four decimal places, and round everything else to 1 decimal places. Follow the seven-step process.
Expert Solution
Step 1

Given:

Let n represents the number of randomly selected U.S adults(n=250).

Let X represents the number of selected adults who said that they would not be bothered if corporations collected records of their activity on the internet (X=74).

Let p^ represents the proportion of adults who said that they would not be bothered if corporations collected records of their activity on the internet; that is;

                                                     p^=Xn   =74250   =0.296

Therefore, the proportion of adults who said that they would not be bothered if corporations collected records of their activity on the internet is 0.296.

Step 1:

The statistical hypothesis that will be formed is:

H0: P0.25(P0)

H1: P>0.25

where P is the true representative of population proportion of adults who said that they would not be bothered if corporations collected records of their activity on the internet.

Step 2:

The test is right tailed test where the researcher wants to test whether more than one quarter of U.S adults would not be bothered if corporations collected records of their activity on the internet.

Step 2

Step 3:

The level of significance (α)=0.01.

Step 4:

The value of test statistics is calculated as:

                                                     Z=p^-P0P0(1-P0)n   =0.296-0.250.25(1-0.25)250   =1.6796

Therefore, the calculated value of test statistics is 1.6796.

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