Reference no: EM132384933

A sample of 113 mortgages approved during the current year showed that 32 were issued to a single-earner family or individual. The historical percentage is 24 percent.

At the .05 level of significance in a right-tailed test, has the percentage of single-earner or individual mortgages risen?

(a-1) H₀: π

π ≤ .24 versus H₁: π

π > .24. Choose the right option.

1. Reject H₀ if z_calc > 1.645
2. Reject H₀ if z_calc < 1.645

• a
• b

(a-2) Calculate the test statistic. (Round intermediate calculations to 2 decimal places. Round your answer to 4 decimal places.)

Test statistic _________

(a-3) The null hypothesis should be rejected.

True

False

(b) Is this a close decision?

Yes

No

(c) State any assumptions that are required.

a. n π < 10 and n(1 - π ) > 10

b. n π  < 10 and n(1 - π ) < 10

c. n π  > 10 and n(1 - π ) > 10

d. n π > 10 and n(1 - π ) < 10

• a
• b
• c
• d