Q2. Decision Rules for one-tailed and two-tailed hypotheses tests. a. State the

Question

Q2. Decision Rules for one-tailed and two-tailed hypotheses tests.

a. State the decision rule for the hypothesis test in Q1 part a. Is this hypothesis test a lower one-tailed test, an upper-one tailed test, or a two-tailed test? ((q1a: The restaurant owner believes that the average profit per customer exceeds $25. Formulate the null hypothesis (H0) (Ho: mu=$25) and the alternative hypothesis (H1) (H1: mu>$25) to determine if the data support the restaurant owner’s claim.))

b. State the decision rule for the hypothesis test in Q1 part b. Is this hypothesis test a lower one-tailed test, an upper one-tailed test, or a two-tailed test? ((Q1b: The business manager believes that average profit per customer is less than $25. Formulate the null hypothesis (H0) (Ho: mu=$25) and the alternative hypothesis (H1) (H1: mu<$25) to determine if the data support the restaurant owner’s claim.))

Explanation / Answer

a)
This is right tailed test i.e. one tailed test
Upper one tailed test
Because we will reject the null if the xbar of sample is significantly higher than the hypothesised mean.

b)
This is left tailed test i.e. one tailed test
Lower one tailed test
Because we will reject the null if the xbar of sample is significantly lower than the hypothesised mean.

c)
This is two tailed test.
Because we will reject the null if the xbar of sample is significantly higher or lower than the hypothesised mean.

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