menu
bartleby
search
close search
Hit Return to see all results

The mean annual return for an employee's IRA is at most 4.7 percent.A) Write the null and alternative hypotheses.B) Indicate whether the hypothesis is left,right, two-tailed.

Question

The mean annual return for an employee's IRA is at most 4.7 percent.

A) Write the null and alternative hypotheses.

B) Indicate whether the hypothesis is left,right, two-tailed.

 

check_circleAnswer
Step 1

Hypothesis:

Hypothesis is an assumption about the parameter of the population which will be made on the limited evidence as the start value to proceed for further investigation, and the assumption may or may not be true.

In testing the hypothesis is of two types. The two types are:

  • Null hypothesis (H0)
  • Alternative hypothesis (H1)

Null and alternative hypothesis:

Null hypothesis:

Null hypothesis is a statement which is tested for statistical significance in the test. The decision criterion indicates whether the null hypothesis will be rejected or not in the favour of alternate hypothesis. In other words it can be said that, the null hypothesis is a statement which indicates the relationship between statistical measurements, distributions or categories. More often, null hypothesis states no significance relationship between variables or populations. But, null does not indicate “0” all the time.

Alternate hypothesis:

Alternate hypothesis is contradictory statement of the null hypothesis. The alternate hypothesis represents whether the hypothesis test is one tailed or two tailed.

  • If the alternate hypothesis indicates “not equal to” symbol then the hypothesis test is said to be two tailed.
  • If the alternate indicates “less than” symbol then the hypothesis test is said to be left tailed.
  • If the alternate hypothesis indicates “greater than” symbol then the hypothesis test is said to be right tailed.
Step 2

A.

State the appropriate hypothesis:

It is given that, the mean annual rate for an employee’s IRA is at most 4.7 percent.

The hypotheses are given below:

Null hypothesis:

H0 : μ ≤ 4.7 percent

That is, the mean annual rate for an employee’s IRA is at most 4.7 percent.

Alternative hypothesis:

Ha : μ > 4.7 percent

That is, the mean annual rate for an employee’s IRA is greater than 4.7 percent.

Step 3

B.

Indicate whether the hypothesis is left tailed or right tailed or two tailed:

Since, the alternate hypothesis indicates “greater than&rdquo...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Our solutions are written by experts, many with advanced degrees, and available 24/7

See Solution
Tagged in

Math

Statistics

Other

Related Statistics Q&A

Find answers to questions asked by student like you

Show more Q&A add
question_answer

Q: A study was conducted to see whether participants would ignore a sign that said, "Elevator may stick...

A: Explanation:Here, the experimenter controls the presence/absence of the confederates, as its effect ...

question_answer

Q: I need help understanding observational units, variables, how to formulate research questions.

A: Solution:Observational units:Observational units are the objects or entities on which information co...

question_answer

Q: Part a, b, and c

A: Null and alternative hypothesis:Null Hypothesis:A null hypothesis is a statement regarding the popul...

question_answer

Q: Number 40 A B C

A: (a) Computation of probability that a randomly selected car will get through Wendy’s drive through i...

question_answer

Q: You receive a brochure from a large university. The brochure indicates that the mean class size for​...

A: According to the given question, to test the claim that The brochure indicates that the mean class s...

question_answer

Q: a. Using the pairs of values for all 10​points, find the equation of the regression line. b. After r...

A: Part (a):From the graph, the data points are (1,7),(1,8),(1,9),(2,7),(2,8),(2,9),(3,7),(3,8),(3,9),a...

question_answer

Q: 12.10. Question attached. Thank you for answering my question!

A: Bonferrroni's formula for half-width is given by the formula shown below where I = number of means (...

question_answer

Q: Use the table below to find the percentage of data items in a normal distribution that lie a. below ...

A: Solution:Percentile reports the percentage of data items in a normal distribution that lies below th...

question_answer

Q: See the attached question.

A: Introduction to binomial distribution:Consider a random experiment involving n independent trials, s...

Sorry about that. What wasn’t helpful?