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?
-The correct null and alternative hypotheses are

Question

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?
-The correct null and alternative hypotheses are
A) H0 : p = 0.28 and HA : p > 0.28.
B) H0 : p = 0.28 and HA : p < 0.28.
C) H0 : p = 0.28 and HA : p ≠ 0.28.
D) H0 : p ≠ 0.28 and HA : p = 0.28.
E) H0 : p > 0.28 and HA : p = 0.28.

Quizplus · Accepted Answer

The null hypothesis (H0) posits no difference from the reported national average (p = 0.28), while the alternative hypothesis (HA) suggests the problem could be more severe in the sampled cities (p > 0.28), based on the higher observed proportion (136/400 = 34%).

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