Hypothesis question. I have attached two similar questions with their respective

Question

Hypothesis question. I have attached two similar questions with their respective answer keys.

Can you please explain why the intuition behind the inequality signs? The questions are worded nearly identical, yet I don't understand how one question is two tailed and the other is one tailed. I have an exam tomorrow, ty!

(f) The claim is made that the mean charge increases by S1 with each extra S1 of mean cost. Test this claim at significance level 0.01. State clearly the null and alternative hypotheses and your conclusion.

Explanation / Answer

f)

The first Ha is called a two-sided test since "not equal" implies that the true value could be either greater than or less than the test value, Bo

When there is in inequality in hypothesis test is always two sided as we will see both side of tails. By this we are saying B2 can either be greater or smaller than 1.

e) See alternative hypothesis here. Claim is B2 is greater than 30. That is it moves in one direction. Thus, it is a one sided test. ALways remember that the claim is our alternative hypothesis.

Example:

Doctors claim is more than 100 people are diseased in this city.

Ho: u   100

H1: u > 100

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.