Answer :
Answer:
Decision rule
Fail to reject the null hypothesis
Conclusion
The sample evidence is not sufficient to conclude that more than three out of four financial institutions that offer online banking facilities are prone to fraud.
Step-by-step explanation:
From the question we are told that
The sample size is n = 214
The sample proportion is p = 0.78
The level of significance is [tex]\alpha = 0.05[/tex]
Generally the population proportion is mathematically represented as
[tex]p = \frac{3}{4} =0.75[/tex] (gotten from the statement ''three out of four'' in the question)
The null hypothesis is [tex]H_o : p = 0.75[/tex]
The alternative hypothesis [tex]H_a : p > 0.75[/tex]
Generally the test statistics is mathematically represented as
[tex]z = \frac{\^{p} - p}{ \sqrt{\frac{p(1-p)}{n} } }[/tex]
=> [tex]z = \frac{0.78- 0.75}{ \sqrt{\frac{ 0.75(1-0.75)}{214} } }[/tex]
=> [tex]z = 1.01[/tex]
Generally the p-value is mathematically represented as
[tex]p-value = P(Z > z )[/tex]
=> [tex]p-value = P(Z > 1.01 )[/tex]
From the z-table
[tex]P(Z > 1.01 ) = 0.15625[/tex]
So
[tex]p-value = 0.15625 [/tex]
From the obtained values we see that [tex]p-value > \alpha[/tex] hence we fail to reject the null hypothesis
Therefore we can conclude that the sample evidence is not sufficient to conclude that more than three out of four financial institutions that offer online banking facilities are prone to fraud.