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:

Weak Internal

Referring to the lack of strength, structure, or robust processes within an organization's internal framework, affecting its effectiveness and efficiency.

Position Power Base

The authority or influence a person holds in an organization or group based on their role or position.

Legitimate

Lawfully recognized or conforming to established rules and standards, having a justified or recognized claim.

Informal

Relating to interactions that occur in a casual or non-official capacity.