According to Australian Bureau of Statistics figures, 5.5% of victims of credit card fraud lose more than $5000 A random sample of 127 victims of credit card fraud was collected. Of these, 15 reported that they lost more than $5,000

Q1 Assume you are asked to test whether the proportion who lose more than $5,000 is greater than 4.5% at the 5% level of significance. (2 marks)

(a) What sampling distribution would you use?

(b) Justify and explain your answer to (a)

Q2 Consider the hypothesis that the true proportion of those who lose more than $5,000 is greater than 4.5% and calculate the following: (2 marks)

(a) the sample proportion (round to 4 decimal points)

(b) the test statistic

(c) the 5% critical value

Q3 Use information in Q5 and the critical value approach to test whether the proportion who lose more than $5,000 is greater than 4.5% at the 5% level of significance. (2 marks)

(a) State the Ho and H1 hypotheses

(b) Decide on the hypothesis

Q4 Use the p-value approach to confirm the result obtained in Q6 (2 marks)