3. A state housing finance agency is investigating housing affordability in two large metropolitan areas, City A and City B. The agency wants to determine if there is a difference in the proportion of all renters who experienced a rent increase of more than 10% in the past year between the two cities. The agency selected a random sample of 400 renters from City A and an independent random sample of 500 renters from City B. In the sample from City A, 112 renters experienced a rent increase of more than 10%. In the sample from City B, 165 renters experienced a rent increase of more than 10%.
State the appropriate null and alternative hypotheses for testing whether there is a difference in the proportion of all renters who experienced a rent increase of more than 10% in the past year between City A and City B. Define any parameters used.
Identify the appropriate inference procedure and verify that the conditions for this procedure are met.
Calculate the test statistic and the -value for the procedure identified in Part B.
Based on the -value calculated in Part C, what conclusion should the state housing finance agency make at the significance level?
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