Question: A recent article in The Wall Street Journal entitled “As Identity Theft Moves Online, Crime Rings Mimic Big Business” states that 39% of the consumer scam complaints by American consumers are about identity theft. You believe this percentage is not true. Suppose a random sample of 90 complaints is obtained. Of these complaints, 40 were regarding identity theft.

a. Formulate the null and alternative hypotheses. Label the claim.

b. Test the claim at the 1% level of significance. Use either the p-value method or rejection regions. List the numbers you calculated. State the decision rule. Explain why.

c. State a conclusion about the claim in terms of the “real-world” significance of the problem.