Question

You want to test if more than 20% of homes in a neighborhood have recently been sold through a short sale, at a foreclosure auction, or by the bank following an unsuccessful foreclosure auction. You take a sample of 60 homes from this neighborhood and find that 14 fit your criteria. The appropriate null and alternative hypotheses are ___________.
a.H0: pbar = 0.20: HA: pbar \ne 0.20

b.H0: pbar = 0.23: HA: pbar \ne 0.23

c.H0: pbar <= 0.20: HA: pbar > 0.20

d.H0: pbar <= 0.23: HA: pbar > 0.23

Answer 1

Answer:

c.H0: pbar <= 0.20: HA: pbar > 0.20

Step-by-step explanation:

From the take on a sample of 60 homes from this neighborhood and 14 fitting in the criteria. The appropriate null and alternative hypotheses a is best expressed in option c.

H0: pbar <= 0.20: HA: pbar > 0.20