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

27%

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

160

people was chosen. From this sample,

52

people had credit scores less than 600. Using

=0.05,

complete parts a and b below

a. Calculate the test statistic.

zp=enter your response here

(Round to two decimal places as needed.)

b.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.

Your answer is correct.

B.

Donotreject

H0.

There is

insufficient

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

C.

Donotreject

H0.

There is

sufficient

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

D.

Reject

H0.

There is

insufficient

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

b. Determine the p-value for this test.