A Report on the U

question 5

Multiple Choice

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 for testing this claim 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

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Definitions:

Accrued Interest

Interest that has accumulated over a period but has not yet been paid or received.

Adjusting Journal Entry

A journal entry made at the end of an accounting period to record unrecognized income or expenses to ensure that the financial statements comply with the accrual concept of accounting.

Supplies Account

An account that records the costs of supplies on hand and used by a business, which can be a significant part of operating expenses depending on the business type.

Year-End Adjustment

Accounting entries made at the end of an accounting period to update accounts for accurate financial reporting.