Suppose a recent random sample of employees nationwide who have a401(k) retirement plan found that 18% of them had borrowed against it in the last year. A random sample of 92 employees from a local company who have a401(k) retirement plan found that 13 had borrowed from their plan. Based on the sampleresults, is it possible toconclude, at the =0.025 level ofsignificance, that the local company had a lower proportion of borrowers from its401(k) retirement plan than the 18% reportednationwide?

Identify the null and alternative hypotheses for this test. Let p be the population proportion of employees from the local company who borrowed against his or her401(k) retirement plan in the last year.

A.

H0: p0.18

HA: p>0.18

B.

H0: p=0.18

HA: p0.18

C.

H0: p0.18

HA: p<0.18

D.

H0: p<0.18

HA: p