A Report on the U

question 2

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 P-value associated with the test statistic
For testing this claim is 0.0029.At α = .05,

• A) we can conclude that the percentage of Americans in these cities experiencing
• difficulty making mortgage payments is significantly higher than 28%.
• B) we can conclude that the percentage of Americans in these cities experiencing
• difficulty making mortgage payments is significantly lower than 28%.
• C) we can conclude that the percentage of Americans in these cities experiencing
• difficulty making mortgage payments is not significantly different from 28%.
• D) we can conclude that the percentage of Americans in these cities experiencing
• difficulty making mortgage payments is equal to 28%.
• E) None of the above.

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Definitions:

Gross Profit

The financial measure representing the difference between sales revenue and the cost of goods sold, indicating the efficiency of a company in managing its labor and supplies in production.

Net Income

The company's final earnings following the deduction of all expenses and taxes from the gross revenue.

Accrual System

An accounting method where income and expenses are recorded when they are earned or incurred, regardless of when the cash transactions occur.

Expenses

The outflow of money to another person or company to pay for an item or service or for a category of costs.