The owner of Prices Limited claims that 75% of all the items in the store cost less than $5. Suppose that you check a random sample of 146 items in the store and find that 105 cost less than $5. Does this indicate that the proportion of items in the store that cost less than $5 is different from 75%. Use a 5% level of significance (α = 0.05). State the null and alternate hypothesis.

Select one:
a. H0: p1 = p2; H1:p1 ≠ p2
b. H0: p = 0.75; H1:p ≠ 0.75
c. H0: p = 0.50; H1:p ≠ 0.50
d. H0: p = 0.75; H1:p < 0.75