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12) The city management company claims that 75% of all low income housing is 1500 sq. ft. The tenants believe the proportion
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Answer #1

Let P denote the proportion of low income housing which is 1500 sq. ft.

The city management company claims that 75% of all low income housing is 1500 sq. ft. That is P = 0.75

The tenants believe that the proportion is smaller than the claim. That is P < 0.75

To test the above claim we state Null and Alternative hypotheses as follows:

Null hypothesis: H0: Proportion of 1500 sq.ft. low income housing is 75%. P=0.75

Versus

Alternative hypothesis: H1: Proportion of 1500 sq.ft. low income housing is smaller than 75%. P<0.75

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