Question

Assume that the minimum wage in Fairly Fair County has been increasing on average 25 cents per year over the last 14 years. A neighboring county claims that their minimum wage laws gave their workers a bigger raise during the same time period.

Set up the Null and the alternative hypothesis for this two-sided test.  

A. Ho: x ̅= $3.50 cents vs. Ha: x ̅ ≠ $3.50

B. Ho: μ ≠ 25 cents vs. Ha: μ = 25 cents

C. Ho: x ̅ = 25 cents vs. Ha: x ̅ ≠ 25 cents

D. Ho: μ = $3.50 vs. Ha: μ ≠ $3.50

Answer 1

Solution:

Correct option is

Ho: μ = $3.50 vs. Ha: μ ≠ $3.50

Option D. is correct.

Explanation:

Valid signs in H₀ are = , and

Valid signs in H_A   are , < and >

for TWO tailed test

< for left tailed test

> for right tailed test

The hypothesis are the statements made about the population parameters such as , , p etc. not for sample statistics.

So , correct option is

Ho: μ = $3.50 vs. Ha: μ ≠ $3.50