Question 9 (10 points) Last year, President Bush granted a tax-cut check to all

Question

Question 9 (10 points) Last year, President Bush granted a tax-cut check to all income tax filers. In doing so, it was reported that he thought that at least 30% of the households would use the tax-cut check to increase spending. According to a report by the University of Michigan Research Center (Wall Street Journal, Feb. 26, 2002). 220 of the 1000 people surveyed said that the 2001 tax-cut check they received has led them to increase spending. The alternate hypothesis for this test is: p>0.22 p 0.22 p0.30

Explanation / Answer

Define, p=Population proportion of the given data.

We need to test the claim whether at least 30% of the households would use the tax-cut check to increase spending.

Thus,the null and alternative hypotheses are-

H0 : p=0.30 against

H1 : p > 0.30 (i.e. at lest 30%)

Hence,the answer is - D.(ANSWER)

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