Hypothesis Test and Significance Test

A simple random sample of 826 payday loan borrowers was surveyed to better understand their interests around regulation that would require lenders to pull credit reports and evaluate debt payments. 51% of those sampled said they would support regulation. Evaluate whether the poll provides convincing evidence that a majority of payday loan borrowers support regulation. Use a 95% confidence level.

(a)State the appropriate null and alternative hypotheses.

(b)Compute the value of the test statistic and specify the rejection region associated with 10% significance level.Then using the rejection region, test the hypotheses.

(c)Compute the p-value.Then using the p-value and 10% significance level, test the hypotheses.