Paying for music downloads. If you use the Internet, have you ever paid to access or download music? This was one of the questions of interest in a recent Pew Internet and American Life Project Survey (Oct. 2010). In a representative sample of 755 adults who use the Internet, 506 stated that they have paid to download music. Let p represent the true proportion of all Internet-using adults who have paid to download music.

a. Compute a point estimate of p.

b. Set up the null and alternative hypotheses for testing whether the true proportion of all Internet-using adults who have paid to download music exceeds .7.

c. Compute the test statistic for part b.

d. Find the rejection region for the test if a = .01.

e. Find the p-value for the test.

f. Make the appropriate conclusion using the rejection region.

g. Make the appropriate conclusion using the p-value.