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 H_{0} 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**

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