Question

An emergency fund is defined as a savings account that has a balance equal to at least two months' living
expenses. An article in a financial magazine claims that 80% of American adults do not have an emergency fund.
To investigate this claim, a financial advisor selects a random sample of 150 American adults and finds that 112 do
not have an emergency fund. The financial advisor would like to know if the data provide convincing evidence that
the true proportion of Americans who do not have an emergency fund is less than 80%. What are the appropriate
hypotheses for this test?

Answer 1

Answer:

a H I o p=0.80 vs. Ha less than 0.80, where P equals the true proportion of All American adults who do not have an emergency fund