A paper included analysis of data from a national sample of 1,000 Americans. One question on the survey is given below."You owe $3,000 on your credit card. You pay a minimum payment of $30 each month. At an Annual Percentage Rateof 12% (or 1% per month), how many years would it take to eliminate your credit card debt if you made no additionalcharges?"Answer options for this question were: (a) less than 5 years; (b) between 5 and 10 years; (c) between 10 and 15 years; (d)never-you will continue to be in debt; (e) don't know; and (f) prefer not to answer.A USE SALT(a) Only 355 of the 1,000 respondents chose the correct answer of "never." Assume that the sample is representative of adultAmericans. Is there convincing evidence that the proportion of adult Americans who can answer this question correctly isless than 0.40 (40%)? Use the five-step process for hypothesis testing (HMC3) described in this section and a = 0.05 to testthe appropriate hypotheses. (Hint: See Example 10.13.)State the appropriate null and alternative hypotheses.O Ho: p 0.40O Ho: p = 0.40 versus H: p + 0.40O Ho: p = 0.40 versus H: p 0.40Find the test statistic and P-value. (Use a table or SALT. Round your test statistic to two decimal places and your P-value tofour decimal places.)z =P-value =State the conclusion in the problem context.O Fail to reject H. We do not have convincing evidence that the proportion of all adult Americans who would answer thequestion correctly is less than 0.40.O Reject Ho. We do not have convincing evidence that the proportion of all adult Americans who would answer thequestion correctly is less than 0.40.O Fail to reject Hg. We have convincing evidence that the proportion of all adult Americans who would answer thequestion correctly is less than 0.40.O Reject Ho. We have convincing evidence that the proportion of all adult Americans who would answer the questioncorrectly is less than 0.40.(b) The paper also reported that 37.1% of those in the sample chose one of the wrong answers (a, b, or c) as their response tothis question. Is it reasonable to conclude that more than one-third of adult Americans would select a wrong answer to thisquestion? Use a = 0.05. (Round your test statistic to two decimal places and your P-value to four decimal places.)State the appropriate null and alternative hypotheses.O Ho: p3O Ho: p +1versus H:p =331versus H: p -Find the test statistic and P-value. (Use a table or SALT. Round your test statistic to two decimal places and your P-value tofour decimal places.)P-value =State the conclusion in the problem context.O Reject Ho. We have convincing evidence that more than one-third of adult Americans would select a wrong answer.O Reject Ho. We do not have convincing evidence that more than one-third of adult Americans would select a wronganswer.O Fail to reject Ho. We have convincing evidence that more than one-third of adult Americans would select a wronganswer.O Fail to reject H. We do not have convincing evidence that more than one-third of adult Americans would select awrong answer.Need Help?Master ItRead ItWatch It1/3

Question

A paper included analysis of data from a national sample of 1,000 Americans. One question on the survey is given below."You owe $3,000 on your credit card. You pay a minimum payment of $30 each month. At an Annual Percentage Rateof 12% (or 1% per month), how many years would it take to eliminate your credit card debt if you made no additionalcharges?"Answer options for this question were: (a) less than 5 years; (b) between 5 and 10 years; (c) between 10 and 15 years; (d)never-you will continue to be in debt; (e) don't know; and (f) prefer not to answer.A USE SALT(a) Only 355 of the 1,000 respondents chose the correct answer of "never." Assume that the sample is representative of adultAmericans. Is there convincing evidence that the proportion of adult Americans who can answer this question correctly isless than 0.40 (40%)? Use the five-step process for hypothesis testing (HMC3) described in this section and a = 0.05 to testthe appropriate hypotheses. (Hint: See Example 10.13.)State the appropriate null and alternative hypotheses.O Ho: p < 0.40 versus H: p > 0.40O Ho: p = 0.40 versus H: p + 0.40O Ho: p = 0.40 versus H: p < 0.40Ho: p + 0.40 versus H: p = 0.40O Ho: p = 0.40 versus H: p> 0.40Find the test statistic and P-value. (Use a table or SALT. Round your test statistic to two decimal places and your P-value tofour decimal places.)z =P-value =State the conclusion in the problem context.O Fail to reject H. We do not have convincing evidence that the proportion of all adult Americans who would answer thequestion correctly is less than 0.40.O Reject Ho. We do not have convincing evidence that the proportion of all adult Americans who would answer thequestion correctly is less than 0.40.O Fail to reject Hg. We have convincing evidence that the proportion of all adult Americans who would answer thequestion correctly is less than 0.40.O Reject Ho. We have convincing evidence that the proportion of all adult Americans who would answer the questioncorrectly is less than 0.40.(b) The paper also reported that 37.1% of those in the sample chose one of the wrong answers (a, b, or c) as their response tothis question. Is it reasonable to conclude that more than one-third of adult Americans would select a wrong answer to thisquestion? Use a = 0.05. (Round your test statistic to two decimal places and your P-value to four decimal places.)State the appropriate null and alternative hypotheses.O Ho: p<.1versus H: p >3O Ho: p +1versus H:p =331versus H: p <31O Ho: p =31= d:°Hversus H: p +Ho: p =versus H: p >-Find the test statistic and P-value. (Use a table or SALT. Round your test statistic to two decimal places and your P-value tofour decimal places.)P-value =State the conclusion in the problem context.O Reject Ho. We have convincing evidence that more than one-third of adult Americans would select a wrong answer.O Reject Ho. We do not have convincing evidence that more than one-third of adult Americans would select a wronganswer.O Fail to reject Ho. We have convincing evidence that more than one-third of adult Americans would select a wronganswer.O Fail to reject H. We do not have convincing evidence that more than one-third of adult Americans would select awrong answer.Need Help?Master ItRead ItWatch It1/3

Accepted Answer

Given data is appropriate for testing of hypothesis to test z-test for single proportion. Because it…