The practice of “phishing,” or using the Internet to pilfer personal information, has become an increasing concern, not only for individual computer users but also for online retailers and financial institutions. The Wall Street Journal reported 28% of people who bank online have cut back on their Internet use. The North Central Educators Credit Union instituted an extensive online security and educational program six months ago in an effort to combat phishing before the problem became extreme. The credit union’s managers are certain that while Internet use may be down, the rate for their customers is much less than 28%. However, they believe that if more than 10% of their customers have cut back on their Internet banking transactions, they will be required to take more stringent action to lower this percentage.
The credit union’s information technology department analyzed 200 randomly selected accounts and determined that 24 indicated they had cut back on their Internet banking transactions.
a. State the appropriate null and alternative hypotheses for this situation.
b. Using α = 0.05 and the p -value approach, indicate whether the sample data support taking a more stringent action.