A Recent Article in the Wall Street Journal Entitled "As

question 143

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.

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Definitions:

Assignee

In a contract, the party who receives the rights of another party (an assignor) to collect what was contractually agreed on in the original contract.

Prenuptial Agreement

An agreement two parties enter into before marriage that clearly states the ownership rights each party enjoys in the other party’s property. To be enforceable, the agreement must be in writing.

Subrogation

The legal right of a third party, usually an insurance company, to pursue recovery of amounts paid for a claim from a liable party.

Federal Statute

A law enacted by the national government that applies across the whole country.