In prior investigations made by a local Gas and Electric Company, 65% of homeowners prefer to heat with gas instead of electricity. In a recent study of 200 homeowners 60% prefer heating with gas. In a two tailed test at a .05 level of significance can we conclude that the percentage of homeowners who prefer gas differs from the previously reported percentage of 65%?

Question

In prior investigations made by a local Gas and Electric Company, 65% of homeowners prefer to heat with gas instead of electricity.  In a recent study of 200 homeowners 60% prefer heating with gas.  In a two tailed test at a .05 level of significance can we conclude that the percentage of homeowners who prefer gas differs from the previously reported percentage of 65%?

What is the Null Hypotheses Ho?

What is the Alternate Hypotheses H1?

Sketch the Normal Distribution and Standard Normal Distribution for the Ho hypothesis.  Identify the reject region(s) and show the critical value(s).
(Clearly delineate in each region what the decision would be.)

What is the decision rule?

What is the value of the Test Statistic? (Calculate answer and show equation with numerical numbers.)  (The value of the test statistic is the numeric value of z or t calculated from the data.)

Based upon the data, what is the decision Ho or H1?

Based upon your decision, what are the two possible outcomes for your 		decision? (Type I, Type II, Correct)