Write the null and alternative hypotheses. Identify which is the claim.

The standard deviation of the base price of a certain type of car is no more than 900.

*Solution*

The null hypothesis, , is a statement that contains of equality, such as ≤,=, or ≥ . The null hypothesis is that the standard deviation of the base price of a certain type of car is no more than 900, or :σ ≤ 900.

The alternative hypothesis , , is the complement of the null hypothesis. It is a statement that must be true if is false, and it contain a statement of inequality, such as <, ≠ , or, > .

The alternative hypothesis is that the standard deviation of the price of a certain type of car is more that 900, or :σ > 900.

Thus , the hypothesis test to be conducted is as follows.

:µ ≤ 900

: µ > 900

The claim is the statement made about the population parameter. It can be either the null or alternative hypothesis, depending on how it is worded. Identify which is the claim for this problem.

The claim for this problem is that the standard deviation of the base price of a certain type of car is no more than 900. This corresponds to null hypothesis .