In a CNN article, 7% of college graduates say they don’t plan on ever being able

Question

In a CNN article, 7% of college graduates say they don’t plan on ever being able to entirely repay their student loans. Financial aid office staff at a private university conducted a study to determine whether the proportion at their university is higher. They surveyed 500 randomly selected recent college graduates and determined that 12% of them don’t plan on ever being able to entirely repay their student loans. Which of the following are the appropriate null and alternative hypotheses for this research question? H0: p = 0.07 Ha: p 0.07 H0: p = 0.07 Ha: p > 0.07 H0: p = 0.12 Ha: p 0.12 H0: p = 0.12 Ha: p > 0.12

Explanation / Answer

Given that, 7% of college graduates say they don’t plan on ever being able to entirely repay their student loans.

And financial aid office staff cinducted a study to determine whether the proportion at their university is higher.

i.e. to check proportion is > 0.07 they conduct a study.

Therefore,

Null and alternate Hypotheses are,

H0: p = 0.07 v/s Ha: p > 0.07

After surveyed 500 college graduates they determine that 12% of them don't plan on ever being able to entirely repay their student loans.

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