SOLUTION: A government agency suggests that the home loan failure rate is 12%. The banking industry puts in a new set of rules to help lessen the number of loan failures. After they go into

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Question 1002819: A government agency suggests that the home loan failure rate is 12%. The banking industry puts in a new set of rules to help lessen the number of loan failures. After they go into effect we sample 600 random, independent homeowners and find 57 are "failing" on their loan. What is the correct setup for the Null and Alternate Hypothesis?
Answer by stanbon(75887) About Me  (Show Source):
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A government agency suggests that the home loan failure rate is 12%.
The banking industry puts in a new set of rules to help lessen the number of loan failures.
After they go into effect we sample 600 random, independent homeowners and find 57 are "failing" on their loan.
What is the correct setup for the Null and Alternate Hypothesis?
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Ho: p = 0.12
Ha: p < 0.12
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Cheers,
Stan H.
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