A Report on the U $28 \%$ Of Americans Have Experienced Difficulty in Making Mortgage Payments

question 14

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) \(H _ { 0 } : p = 0.28\) and \(H _ { A } : p < 0.28\)
• B) \(H _ { 0 } : p = 0.28\) and \(H _ { A } : p > 0.28\)
• C) \(H _ { 0 } : p \neq 0.28\) and \(H _ { A } : p = 0.28\)
• D) \(H _ { 0 } : p > 0.28\) and \(H _ { A } : p = 0.28\)
• E) \(H _ { 0 } : p = 0.28\) and \(H _ { A } : p \neq 0.28\)

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Definitions:

Sales Revenue

The total income received from selling goods or services before any expenses are subtracted.

Other Revenues

Income from activities that are not part of a company's core business operations.

Interest Expense

The cost incurred by an entity for borrowed funds over a period of time.

Goodwill

An intangible asset representing the excess of the purchase price over the fair market value of an acquired company’s net assets.