The State Association of Retired Teachers Has Recently Taken Flak $\mathrm { H } _ { 0 } : \mathrm { p } = 0.6$

question 72

Short Answer

The State Association of Retired Teachers has recently taken flak from some of its members regarding the poor choice of the association's name. The association's by-laws require that more than 60 percent of the association must approve a name change. Rather than convene a meeting, it is first desired to use a sample to determine if meeting is necessary. Identify the null and alternative hypothesis that should be tested to determine if a name change is warranted. A) $\mathrm { H } _ { 0 } : \mathrm { p } = 0.6$ vs. $\mathrm { H } _ { \mathrm { a } } : \mathrm { p } \neq 0.6$
B) $\mathrm { H } _ { 0 } : \mathrm { p } = 0.6$ vs. $\mathrm { H } _ { \mathrm { a } } : \mathrm { p } > 0.6$
C) $\mathrm { H } _ { 0 } : \mathrm { p } = 0.6$ vs. $\mathrm { H } _ { \mathrm { a } } : \mathrm { p } < 0.6$
D) $\mathrm { H } _ { 0 } : \mathrm { p } \geq 0.6$ vs. $\mathrm { H } _ { \mathrm { a } } : \mathrm { p } < 0.6$

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Definitions:

Understatement

The act of reporting less income or fewer assets than actually exist, often resulting in a lower tax liability but potentially leading to penalties if deliberate.

Fraud

An intentional deception made for personal gain or to damage another individual.

25%

A rate or portion equal to one fourth or 25 out of 100 parts in a given context, often related to taxes, discounts, or interest rates.

Tax Liability

The total amount of tax owed by an individual or entity to the tax authorities.