Julia Hypothesizes That Fewer Than 90 Percent of Her Visa

question 129

Essay

Julia hypothesizes that fewer than 90 percent of her Visa purchases are under $100. She examines a random sample of her recent purchases and performs a test. The results shown below are from MegaStat. What would Julia conclude from this test? Explain carefully.
$$\begin{array} { | c c l | } \hline \text { Observed } & \text { Hypothesized } & \\0.8308 & 0.9 & \mathrm { p } \text { (as decimal) } \\108 / 130 & 117 / 130 & \mathrm { p } \text { (as fraction) } \\108 . & 117 . & \mathrm { X } \\130 & 130 & \mathrm { n } \\& & \\0.0263 & \text { std. error } & \\- 2.63 & z & \\.0043 & \text { p-value (one-tailed, lower) } \\\hline\end{array}$$

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Definitions:

Potatoes

A starchy tuber that is a key agricultural product consumed globally, versatile in culinary uses.

Indifference Curve

A graph representing combinations of goods among which a consumer is indifferent, showing preference levels.

Bundle

A collection of items or services offered together as a single package.

Satisfaction

The fulfillment or gratification of a desire, need, or appetite; a measure of utilities or happiness obtained from consuming goods or services.