Consider the following to answer the question(s) below:
Suppose that a report indicates that 28% of Canadians have experienced difficulty in making mortgage payments. Further suppose that a news organization randomly sampled 400 Canadians from 10 cities and found that 136 reported such difficulty. Does this indicate that the problem is more severe among these cities?
-At α = 0.05
A) We can conclude that the percentage of Canadians in these cities experiencing difficulty making mortgage payments is significantly higher than 28%.
B) We can conclude that the percentage of Canadians in these cities experiencing difficulty making mortgage payments is significantly lower than 28%.
C) We can conclude that the percentage of Canadians in these cities experiencing difficulty making mortgage payments is not significantly different from 28%.
D) We can conclude that the percentage of Canadians in these cities experiencing difficulty making mortgage payments is equal to 28%.
E) No conclusion can be drawn with the given information.

Question

Quizplus · Accepted Answer

The sample proportion is 136/400 = 0.34 or 34%. A hypothesis test comparing this to the population proportion of 28% at α = 0.05 would likely show a significant difference, indicating the problem is more severe in these cities.

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