Problem 974

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

The standard deviation of the base price of a certain type of car is no more than 900.    <span style="text-decoration: underline;"><em><strong>Solution:-</strong></em></span>  The null hypothesis, H<sub>0</sub>, is a statement that contain a statement of equality, such as \le , =, or \ge . The null hypothesis is that the standard deviation of the base price of a certain type of car is no more than900, or H0: σ ≤ 900.

The alternative hypothesis, Ha, is the complement of the null hypothesis. It is a statement that must be true if H0 is false, and it contains a statement of inequality, such as <,≠, or >.The alternative hypothesis is that the standard deviation of the base price of a certain type of car is more than 900, or H<sub>a</sub> : σ > 900.  Thus, the hypothesis test to be conducted is a follows.  H<sub>0</sub>: σ \le 900  H<sub>a</sub>: σ > 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 than900. This corresponds to the hypothesis H0.

 

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