Question
7.134 ARRESTING SHOPLIFTERS. Shoplifting in the United States costs retailers about $45 million a day. Despite the seriousness of the problem, the National Association of
7.134 ARRESTING SHOPLIFTERS. Shoplifting in the United States costs retailers about $45 million a day. Despite the seriousness of the problem, the National Association of shoplifting Prevention (NASP) claims that only 50% of all shoplifters are turned over to police (www.shopliftingprevention.org). A random sample of 40 US retailers were questioned concerning the disposition of the most recent shoplifter they apprehended. A total of 24 were turned over to police. Do these data provide sufficient evidence to contradict the NASP?
a) Conduct a hypothesis test to answer the question of interest. Use =.05.
b) Is the sample size large enough to use the inferential procedure of part a?
c) Find the observed significance level of the hypothesis test in part a. Interpret the value.
d) For what values of would the observed significance level be sufficient to reject the null hypothesis of the test you conducted in part b?
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