The Owner of a Popular Internet-Based Auction Site Believes That

question 41

Essay

The owner of a popular Internet-based auction site believes that more than half of the people who sell items on her site are women. To test this hypothesis, the owner sampled 1000 customers who sold items on her site and she found that 53% of the customers sampled were women. Some calculations are shown in the table below.
-(A) If you were to conduct a hypothesis test to determine if greater than 50% of customers who use this Internet-based site are women, would you conduct a one-tail or a two-tail hypothesis test? Explain your answer, and state the appropriate null and alternative hypotheses.
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(B) How many customers out of the 1000 sampled must have been women in this case?
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(C) Using a 5% significance level, can the owner of this site conclude that women make up more than 50% of her customers? Explain your answer.
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(D) If you were to use a 1% significance level, would the conclusion from (C) change? Explain your answer.

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Definitions:

Mass

A property of physical objects that measures the amount of matter within them, often influencing how they interact with forces and each other.

Quantity of Matter

This term typically refers to the mass of an object or substance, indicating the amount of material present.

U.S. President

The elected head of state and head of government of the United States, serving as the country's chief executive officer.

Quaker

A member of the Religious Society of Friends, a Christian movement known for its pacifist beliefs, silent worship, and simplicity.