Question

What would be an appropriate null hypothesis for the following scenarios: (a) The lines in linear regression are often considered the model (these can, however, be thought of as a hypothesis). What then would be the null hypothesis?

(b) A medical company is developing a new drug to lower cholesterol. They claim their newest batch can reduce cholesterol by 20%! What would be the null hypothesis they should be testing against?

(c) MoviePass is (was) a company that allows you to have a monthly subscription for $10 whereby you could see movies in the theater once a day for “free”. They claim to movie theaters that they should cooperate with MoviePass because it will bring in more customers and help especially with concession stand sales. What would be the null hypothesis to MoviePass’ claim?

Answer 1

To state a null hypothesis, first we can think the claim in a question form and then rephrase that question in a form that assumes no significant relationship between the variables. So, following this we have answered the given questions.

a) null hypothesis: The lines in linear regression are not often considered the model.

b)Null hypothesis: The new drug of the medical company can not lower cholesterol level by 20%.

c) Null hypothesis: movie theaters shouldn't cooperate with moviePass.