Question

Consumers Energy states that the average electric bill across the state is $39.09. You want to test the claim that the average bill amount is actually different from $39.09. What are the appropriate hypotheses for this test

Answer 1

The null hypothesis is
`\mu = 39.09`

The symbol
`\mu` is the Greek letter mu

The alternate hypothesis is
`\mu \\e 39.09` telling us we have a two-tailed test here. The "not equal" is directly tied to the keyword "different" given in the instructions. In other words, mu being different from 39.09 directly leads to
`\mu \\e 39.09`

So either mu is 39.09 or it's not 39.09

You can use H0 and H1 to represent the null and alternate hypotheses respectively.

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Summary:

The two hypotheses are

H0:
`\mu = 39.09`

H1:
`\mu \\e 39.09`

This is a two tailed test.