Question

The manager of an automobile dealership is considering a new bonus plan in order to increase sales. Currently, the mean sales rate per salesperson is five automobiles per month. The correct set of hypotheses for testing the effect of the bonus plan is

a. H0: μ < 5 Ha: μ ≤5
b. H0: μ ≤5 Ha: μ > 5
c. H0: μ > 5 Ha: μ ≤5
d. H0: μ ≥5 Ha: μ < 5

Answer 1

Lyrics b H₀ the null hypothesis μ₀ ≤ 5 and

Hₐ alternative hypothesis μₐ > 5

Explanation:

Dealership has a plan to increase sales, having the rate per salesperson 5 per month

He has to test the mean value he has now (5 cars per person per month) against values above 5. If he find than in future months the mean is biiger than 5 he would say he successful in the intention of increase sales.

Therefore the test should be

H₀ the null hypothesis μ₀ ≤ 5 and

Hₐ alternative hypothesis μₐ > 5