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Write the null hypothesis and the alternative hypothesis for

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Write the null hypothesis and the alternative hypothesis for the following statement.

Label the one that is the claim being made. A special insulation will lower your heating bills by less than $78.

asked Mar 17, 2013 in Statistics by Sophiya (770 points)
best statistics quiz

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Best answer
The claim is average heating bill is less than \$ 78. In symbolic form it can be written as $\mu < \$78$.

If $\mu < \$78$ is false, then $\mu \geq \$78$ must be true.

The null hypothesis is the statement which contains equality.

Hence the null hypothesis be $H_0 : \mu \geq \$78$. And the alternative hypothesis be $H_a : \mu < \$78$.

So the hypothesis testing problem be

$H_0 : \mu \geq \$78$  against $H_a : \mu < \$78$.
answered Mar 18, 2013 by Varad (15,980 points)
selected Mar 18, 2013 by Sophiya
Thanks Admin, Novelanswer website really useful for me to get quick response on any question of statistics
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