Here are the essential concepts you must grasp in order to answer the question correctly.
Null Hypothesis (H0)
The null hypothesis is a statement that indicates no effect or no difference, serving as a default position that assumes any observed effect is due to sampling variability. In this context, it would assert that the proportion of adults with student loan debt is equal to 14%, symbolically represented as H0: p = 0.14.
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Alternative Hypothesis (H1)
The alternative hypothesis is a statement that contradicts the null hypothesis, suggesting that there is an effect or a difference. For this scenario, it would claim that the proportion of adults with student loan debt is not equal to 14%, represented as H1: p ≠ 0.14, indicating a potential change in the debt situation.
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Claim
In hypothesis testing, the claim is the assertion that is being tested, often aligned with the alternative hypothesis. In this case, the claim is that the proportion of adults carrying student loan debt differs from 14%, which is encapsulated in the alternative hypothesis, H1.
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Step 1: Write Hypotheses Example 1