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1. A state representative is reported as saying that about 10% of reported auto thefts involve owners whose cars have not really been stolen, but who are trying to defraud their insurance company. What null and alternative hypotheses would be appropriate in evaluating the statement made by this legislator?
2. In response to the assertion made in Exercise, suppose an insurance company executive were to claim the percentage of fraudulent auto theft reports to be "no more than 10%." What null and alternative hypotheses would be appropriate in evaluating the executive's statement?
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