A Report on the U $H_{0}: p=0.28$ And $H_{A}: p>0.28$

question 13

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) \( H_{0}: p=0.28 \) and \( H_{A}: p \neq 0.28 \)
• D) \( H_{0}: p \neq 0.28 \) and \( H_{A}: p=0.28 \)
• E) \( H_{0}: p>0.28 \) and \( H_{A}: p=0.28 \)

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Definitions:

Electricity Bills

A periodic payment made by consumers for the electricity that they have consumed during a billing cycle.

Interest Rate

The percentage of the principal amount charged by lenders to borrowers for the use of money.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Auto Loan Payments

Regular payments made by a borrower to a lender for the use of borrowed money to purchase an automobile, typically including both principal and interest.