The mean length of long-distance telephone calls placed with a particular phone

Question

The mean length of long-distance telephone calls placed with a particular phone company was known be 7.6 min under an old rate structure. In an attempted to be more competitive with other long distance carries, the phone company lowered long-distance rates, thinking that its customers would be encouraged to make longer calls and true that there would not be a big loss in revenue. Let mu denote the true mean length of long-distance calls after the rate reduction. What hypotheses should the phone company test to whether the mean length of long-distance calls increased determine calls increased with the lower rates? You may need to use the appropriate table in Appendix A to answer this question. H_0: mu = 7.6 versus H_a mu 7.6 H_0: mu = 7.6 versus H_a mu 7.5 H_0: mu = 7.6 versus H_a mu > 7.5

Explanation / Answer

.Null Hypothesis(Ho) - This is the statment that is under investigation or being tested. Usually the null hypothesis represents a statment of "no effect"," no difference" or put another way,"things have not changed".

Alternative Hypothesis(Ha)- This is the statment you will adopt in the situation where the evidence (data) is so strong that you reject Ho. A statistical test is designed to access the strength of the evidence (data) against the null hypothesis. Any hypothesis that differs from the null hypothesis is called an alternative hypothesis. An alternative hypothesis is constructed in a such a way that it is the one to be accepted when null hypothesis must be rejected.

The Correct option is,

Ho: mu =7.6 versus Ha : mu > 7.6

Explatnation -

Under an old structure the mean length of long distance telephone calls placed with a perticular phone company was known to be 7.6 min. (Is the statment of no difference)

Now company wants more customers would be encounterd to make long calls therefore company lowered long distance call rates i.e. company wants to check, Is the mean length of long distance telephone calls increased with lower rates? therefore in the alternative hypothesis Ha : mu > 7.6

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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