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.
​
(B) How many customers out of the 1000 sampled must have been women in this case?
​
(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.
​
(D) If you were to use a 1% significance level, would the conclusion from (C) change? Explain your answer.

---

Definitions:

Annual Return

The percentage change in an investment's value over a year, accounting for dividends, capital gains, and interest earned.

Investment

Assets acquired or money spent in the hope of generating income or profit over time, including stocks, bonds, property, or equipment.

Compound Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Future Value

The worth of a short-term asset at a future date, calculated by projecting its growth at a certain rate over a period of time.