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A City Claims That 75% of All Low Income Housing

Question 17

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A city claims that 75% of all low income housing is 1500 sq.ft.The tenants believe the proportion of housing this size is smaller than the claim,and hire an independent firm to test an appropriate hypothesis.The P-value turns out to be 0.025.Provide an appropriate conclusion.


A) There is a 2.5% chance of no change in the proportion of housing that is 1500 sq.ft.
B) There is a 97.5% chance of no change in the proportion of housing that is 1500 sq.ft.
C) We can say there is a 2.5% chance of seeing a change in the proportion of housing that is 1500 sq.ft.in the results we observed from natural sampling variation.We conclude the tenants are correct and that the proportion of housing with 1500 square feet is less than 75%.
D) If 75% of all low income housing is 1500 sq.ft. ,then there is a 2.5% chance of seeing a sample proportion of such houses as low (or lower) than what we we observed from natural sampling variation.There is no evidence of that the proportion of housing is smaller than 1500 sq.ft. ,but we can not conclude there is no change in the proportion of housing that is 1500 sq.ft.
E) If 75% of all low income housing is 1500 sq.ft. ,then there is a 2.5% chance of seeing a sample proportion of such houses as low (or lower) than what we we observed from natural sampling variation.There is strong evidence the tenants are correct and that the proportion of housing with 1500 square feet is less than 75%.

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