Chapter 7, Problem 7.125ACB

Paying for music downloads. If you use the Internet. have you ever paid to access or download music? This was one of the questions of interest in a Pew Internet & American Life Project Survey (October 201 0). In a representative sample of 755 adults who use the Internet. 506 admitted that they have paid to download music. Let p represent the true proportion of all Internet-using adults who have paid to download music.

1. a. Compute a point estimate of p.
2. b. Set up the null and alternative hypotheses for testing whether the true proportion of all Internet-using adults who have paid to download music exceeds .7.
3. c. Compute the test statistic for part b.
4. d. Find the rejection region for the test if α = .01.
5. e. Find the p-value for the test.
6. f. Make the appropriate conclusion using the rejection region.
7. g. Make the appropriate conclusion using the p-value.