Consumers with credit scores below 600 have a very difficult time getting approved for car or mortgage loans. Historically

22%

of people had a credit score below 600. Due to the recent financial crisis, the federal government is concerned that this proportion has increased. To test this hypothesis, a random sample of

200

people was chosen. From this sample,

58

people had credit scores less than 600. Using

=0.10,

complete parts a and b below.

Question content area bottom

Part 1

a. Does this sample provide support for the government's concern that the proportion of people with credit scores below 600 has increased?

Determine the null and alternative hypotheses. Choose the correct answer below.

A.

H0:

p=0.22

H1:

p0.22

B.

H0:

p>0.22

H1:

p0.22

C.

H0:

p0.22

H1:

p>0.22

D.

H0:

p0.22

H1:

p<0.22

Part 2

Determine the critical value(s) of the test statistic.

z=enter your response here

(Use a comma to separate answers as needed. Round to

two

decimal places as needed.)

Part 3

Calculate the test statistic.

zp=enter your response here

(Round to two decimal places as needed.)

Part 4

Determine the proper conclusion. Choose the correct answer below.

A.

Reject

H0.

There is

sufficient

evidence that the proportion of people with credit scores below 600 has increased.

B.

Donotreject

H0.

There is

sufficient

evidence that the proportion of people with credit scores below 600 has increased.

C.

Reject

H0.

There is

insufficient

evidence that the proportion of people with credit scores below 600 has increased.

D.

Donotreject

H0.

There is

insufficient

evidence that the proportion of people with credit scores below 600 has increased.

Part 5

b. Determine the p-value for this test.

p-value=enter your response here

(Round to three decimal places as needed.)