Answer:
The hypothesis can be defined as follows:
H₀: The rate of home ownership is 67.4%, i.e. p = 0.674.
Hₐ: The rate of home ownership is more than 67.4%, i.e. p > 0.674.
Step-by-step explanation:
In this case we need to determine whether the city should continue with plan of offering tax breaks to first-time home buyers in order to encourage people to become homeowners.
It is provided that, a few years ago, a census bureau reported that 67.4% of American families owned their homes.
But the Census data reveal that the ownership rate in one small city is much lower.
So, to improvise this the city council wants to offer tax breaks to first-time home buyers in order to encourage people to become homeowners.
They decide to adopt the plan on a 2-year trial basis and use the data they collect to make a decision about continuing the tax breaks.
To determine whether the city council should continue with the plan or not, the hypothesis can be defined as follows:
H₀: The rate of home ownership is 67.4%, i.e. p = 0.674.
Hₐ: The rate of home ownership is more than 67.4%, i.e. p > 0.674.
