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 int

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Question 467830: 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 home loan.
11. Which of the following is the correct setup for the Null and Alternate Hypothesis?
A. Ho: p = 0.095
Ha: p < 0.095

B. Ho: p < 0.12
Ha: p = 0.12

C. Ho: p = 0.12
Ha: p < 0.12

D. Ho: p = 0.12
Ha: p < 0.095

E. there is not enough information given.


Answer by robertb(5830) About Me  (Show Source):
You can put this solution on YOUR website!
C. Ho: p = 0.12
Ha: p < 0.12