Failure to meet payments on student loans has been a major problem for both banks and the government. Approximately 50% of all student loans are in default. A random sample of 350 loans to students indicates that 147 are in default.
-The appropriate hypotheses that attempt to provide evidence supporting the claim that at least 50% of student loans are in default is _____.

Question

Failure to meet payments on student loans has been a major problem for both banks and the government. Approximately 50% of all student loans are in default. A random sample of 350 loans to students indicates that 147 are in default. -The appropriate hypotheses that attempt to provide evidence supporting the claim that at least 50% of student loans are in default is _____. A)H₀: p ≤ .42 vs H_A: p > .42 B)H₀: p ≥ .50 vs H_A: p < .50 C)H₀: p ≤ .50 vs H_A: p > .50 D)H₀: p = .50 vs H_A: p ≠ .50 E)H₀: p ≠ .50 vs H_A: p = .50

Quizplus · Accepted Answer

The appropriate hypotheses can be written as:
Null hypothesis: p ≤ 0.50 (proportion of student loans in default is less than or equal to 50%)
Alternative hypothesis: p > 0.50 (proportion of student loans in default is greater than 50%)

Option C has the appropriate null and alternative hypothesis written, which makes it the best choice.

Failure to Meet Payments on Student Loans Has Been a Major