A Recent Article in the Wall Street Journal Entitled "As

question 45

Multiple Choice

A recent article in The Wall Street Journal entitled "As Identity Theft Moves Online, Crime Rings Mimic Big Business" states that 39% of the consumer scam complaints by American consumers are about identity theft. Suppose a random sample of 90 complaints is obtained. Of these complaints, 40 were regarding identity theft. Based on these sample data, what conclusion should be reached about the statement made in The Wall Street Journal? (Test using α= 0.10.)

• A) Since z = 1.947 > 1.645, we reject the null hypothesis. There is sufficient evidence to conclude that the 0.39 rate quoted in the WSJ article is wrong.
• B) Since z = 2.033 > 1.96, we reject the null hypothesis. There is sufficient evidence to conclude that the 0.39 rate quoted in the WSJ article is wrong.
• C) Since z = 1.341 < 1.645, we do not reject the null hypothesis. There is insufficient evidence to conclude that the 0.39 rate quoted in the WSJ article is wrong.
• D) Since z = 0.97 < 1.645, we do not reject the null hypothesis. There is insufficient evidence to conclude that the 0.39 rate quoted in the WSJ article is wrong.

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Definitions:

Sensation

The process by which sensory receptors and the nervous system receive and represent stimulus energies from the environment.

Neurons

The basic working units of the brain, specialized cells designed to transmit information to other nerve cells, muscle, or gland cells.

Signal-Detection Experiment

A methodology in psychology that measures the ability to differentiate between information-bearing patterns and random patterns that distract from the information.

False Alarms

Instances in signal detection when a non-target stimulus is incorrectly identified as a target, leading to erroneous responses.