Bonds are a better investment during times of low interest rates. A survey of executives during a time of low interest rates showed that 57% of them had some retirement funds invested in bonds. Assume this percentage is constant for bond market investment by executives with retirement funds. Suppose interest rates have risen lately and the proportion of executives with retirement investment money in the bond market may have dropped. To test this idea, a researcher randomly samples 210 executives who have retirement funds invested in bonds. For = 0.10, the researcher wonders if the test show enough evidence to declare that the proportion of executives with retirement fund investments in the bond market is significantly lower than 0.57.

(a) State the null hypothesis and the alternative hypothesis.

(b) Which test statistics is appropriate and why?

(c) In complete sentences, state the Type I and Type II errors.