In a study of vehicle ownership, it has been found that 22.4% of U.S. households

Question

In a study of vehicle ownership, it has been found that 22.4% of U.S. households do not own a vehicle, with 42.3% owning 1 vehicle, and the remaining owning 2 or more vehicles. The data for a random sample of 150 households in a resort community are as follows:

46 owned 0 vehicles, 68 owned 1 vehicle, and the remaining owned 2 vehicles.

When testing (at the 5% level of significance) whether the vehicle-ownership distribution in this community differs from that of the nation as a whole what is the null and alternative hypotheses?

Explanation / Answer

Our null and alternative hypotheses at the time of testing would be:

Ho: The vehicle owner distribution in this community is same as that of nation as a whole.

H1: The vehicle owner distribution in this community differs from that of nation as a whole.

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