Question

# Assume that the minimum wage in Fairly Fair County has been increasing on average 25 cents...

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

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 HA   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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