Business Finance
Hypothesis Testing

Question Description

I don’t know how to handle this Business question and need guidance.

for the following two examples, determine the null and alternative as well as state which one represents the claim. State what type of test will be completed: left-tailed, right-tailed, or two-tailed. Claim 1: The average score of the first exam for the class is an 81%. Claim 2: The average price for a gallon of gas is more than $3.00.

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with Studypool's honor code & terms of service.

Final Answer

Here are the 3 kinds of tests
Right-tailed:
H0: mu <= x
HA: mu > x

Left-tailed:
H0: mu >= x
HA: mu < x

Two-tailed:
H0: mu = x
HA: mu ≠ x

The equals sign indicates the difference between the null and alternative hypotheses. The hypothesis with the = sign represents the claim, and is assumed accurate unless evidence points to it being false.

The null hypothesis is the one which shows "equal" values or "no change". The alternative hypothesis is stated as "greater than", "less than", or "not equal to".


Claim 1: H0 (claim): mu = 0.81
HA: mu ≠ 0.81

Claim 2: H0: mu <= 3
HA (claim): mu > 3

Note the way the claim was stated: "more than $3.00", not "$3.00 or more". This means that if the test shows no significant difference from $3.00, the null hypothesis should not be rejected.

http://www.justanswer.com/calculus-and-above/7zpvr-statistics-question-stuck-on-discuss.html

nirmala (6)
UC Berkeley

Anonymous
Thanks for the help.

Anonymous
Outstanding. Studypool always delivers quality work.

Anonymous
Tutor was very helpful and took the time to explain concepts to me. Very responsive, managed to get replies within the hour.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors