The New Jersey Renewable Energy Incentive Program provides i

The New Jersey Renewable Energy Incentive Program provides incentives for the use of photovoltaics, solar hot water, and other renewable energy sources. During the last few years it was assumed that approximately 20% of families in New Jersey are interested in the program. However, it is now suspected that this figure has increased. In order to test this, a random sample of 1200 families is selected, and it is found that 360 of them are interested in the program. What are the null and alternative hypotheses that should be used (H0 = null hypothesis and Ha = alternative hypothesis)?

A.H0: p = 360; Ha: p >360

B.H0: p = 30%; Ha: p < 30%

C.H0: p = 20%; Ha: p > 20%

D.H0: p > 30%; Ha: p = 30%

E.H0: p = 30%; Ha: p > 30%

Solution

Answer: C.H0: p = 20%; Ha: p > 20%