# Question

It has been reported that 20% of the people who made online purchases last year used PayPal at least once to pay for their purchase. It is suspected that the percentage has increased this year. Suppose you take a random sample of 600 people who made an online purchase this year and find that 138 of those sampled used PayPal at least once to pay for their purchase.

a. Use the normal sampling distribution of the sample proportion to test a null hypothesis that the PayPal usage rate is .20 or less this year. Use a significance level of .05. Find the pvalue for the sample result and report your conclusion.

b. Suppose the sample size had been 25 rather than 200 and nine people in the sample reported using PayPal at least once this year. Repeat the test in part a using this reduced sample size. Use the binomial distribution to conduct the test. Find the pvalue for the sample result and report your conclusion.

a. Use the normal sampling distribution of the sample proportion to test a null hypothesis that the PayPal usage rate is .20 or less this year. Use a significance level of .05. Find the pvalue for the sample result and report your conclusion.

b. Suppose the sample size had been 25 rather than 200 and nine people in the sample reported using PayPal at least once this year. Repeat the test in part a using this reduced sample size. Use the binomial distribution to conduct the test. Find the pvalue for the sample result and report your conclusion.

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