Question

c. For each statement in the following table, place in X in the correct box to...

c. For each statement in the following table, place in X in the correct box to indicate whether the statement is the null hypothesis, the alternative hypothesis, or neither (Hint: this is a non-directional hypothesis test) Null Hypothesis Alternate Hypothesis Neither In households with a minimum-wage worker, mean household debt changes following a hike in the minimum wage In households with a minimum-wage worker, mean household debt stays the same following a hike in the minimum wage In households with a minimum-wage worker, mean household debt increases following a hike in the minimum wage In households with a minimum-wage worker, mean household debt decreases following a hike in the minimum wage

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Answer #1

Note for non-directional Hypo test, Null hypo is always written as "The parameter of interest stays the same"; whereas alternate hypo is written as " The parameter of interest changes / decreases / increases ". In this question, parameter of interest is "Mean household debt".  With this concept, we get following answers :

1. In households with a minimum-wage worker, mean household debt changes following a hike in the minimum wage : Alternate Hypo .

2.  In households with a minimum-wage worker, mean household debt stays the same following a hike in the minimum wage :: Null Hypothesis

3. In households with a minimum-wage worker, mean household debt increases following a hike in the minimum wage ::: Alternate Hypothesis

4. In households with a minimum-wage worker, mean household debt decreases following a hike in the minimum wage :: Alternate Hypothesis

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