According to the February 2008 Federal Trade Commission report on consumer fraud and identity theft, 23% of all complaints in 2007 were for identity theft. In that year, Alaska had 321 complaints of identity theft out of 1,432 consumer complaints. Does this data provide enough evidence to show that Alaska had a lower proportion of identity theft than 23%?

The hypotheses are:

H0:p= 23%

H1:p< 23%

What is a type I error in the context of this problem?

Reference: Federal Trade Commission, (2008). Consumer fraud and identity theft complaint data: January-December 2007. Retrieved from website: http://www.ftc.gov/opa/2008/02/fraud.pdf.

• A.It is believed that more than 23% of Alaskans had identity theft and there really were 23% or more that experience identity theft.
• B.It is believed that less than 23% of Alaskans had identity theft and there really were 23% or less that experienced identity theft.
• C.It is believed that less than 23% of Alaskans had identity theft even though there really were 23% or more that experienced identity theft.
• D.It is believed that more than 23% of Alaskans had identity theft even though there really were less