A report on the US economy indicates that 28 of Americans ha

A report on the U.S. economy indicates that 28% of Americans have experienced difficulty in making mortgage payments. A news organization randomly sampled 400 Americans from 10 cities named the \"fastest dying cities in the U.S.\" (Forbes Magazine, August 2008) and found that 136 reported such difficulty. Does this indicate that the problem is more severe among these cities?

The correct null and alternative hypotheses are

A) H₀: p = 0.28 and H_A: p < 0.28
B) H₀: p > 0.28 and H_A: p = 0.28
C) H₀: p = 0.28 and H_A: p > 0.28
D) H₀: p = 0.28 and H_A: p ? 0.28
E) H₀: p ? 0.28 and H_A: p = 0.28

Solution

A report on the U.S. economy indicates that 28% of Americans have experienced difficulty in making mortgage payments. A news organization randomly sampled 400 Americans from 10 cities named the \"fastest dying cities in the U.S.\" (Forbes Magazine, August 2008) and found that 136 reported such difficulty. Does this indicate that the problem is more severe among these cities?

Null hypothesis is p=0.28

The question is to   indicate that the problem is more severe among these cities

Alternate hypothesis is upper tailed test

The correct option is C

The correct null and alternative hypotheses are

A) H₀: p = 0.28 and H_A: p < 0.28
B) H₀: p > 0.28 and H_A: p = 0.28
C) H₀: p = 0.28 and H_A: p > 0.28
D) H₀: p = 0.28 and H_A: p ? 0.28
E) H₀: p ? 0.28 and H_A: p = 0.28