A rule of thumb is that for working individuals one-quarter


Question: A rule of thumb is that for working individuals one-quarter of household income should be spent on housing. A financial advisor believes that the average proportion of income spent on housing is more than 0.25. In a sample of 30 households, the mean proportion of household income spent on housing was 0.285 with a standard deviation of 0.063. Perform the relevant test of hypotheses at the 1% level of significance.

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