Question

A report indicates that 28% of Canadian homeowners have

experienced organisation randomly sampled 400 Canadian homeowners from 10 cities and found
that 95 reported such difficulty. Does this indicate that the problem is less severe
among homeowners in these cities? Assuming that p represents the proportion of
homeowners in these 10 cities that experience difficulty in making mortgage
payments: the correct null and alternative hypotheses to investigate this question is
H0: p=0.28 and HA: p>0.28
H0: p ≠ 0.28 and HA: p=0.28
H0: p=0.28 and HA: p<0.28

Answer 1

The correct null and alternative hypotheses to investigate if the problem is less severe among homeowners in these cities are H0: p ≥ 0.28 and HA: p < 0.28.

Step-by-step explanation:

To determine if the problem of homeowners experiencing difficulty in making mortgage payments is less severe among homeowners in these cities, we need to set up the correct null and alternative hypotheses.

The correct null hypothesis (H0) would state that the proportion (p) of homeowners in these cities experiencing difficulty is equal to or greater than the overall proportion of Canadian homeowners (0.28). Therefore, the correct null hypothesis is H0: p ≥ 0.28.

The correct alternative hypothesis (HA) would state that the proportion (p) of homeowners in these cities experiencing difficulty is less than the overall proportion of Canadian homeowners (0.28). Therefore, the correct alternative hypothesis is HA: p < 0.28.