Answer to Question #347513 in Statistics and Probability for Cecel

Question

Parameter, null hypothesis in symbol, alternative hypothesis in symbol, directional or non directional, level of significance,. 1. A college dean claims that a bachelor's degree should be earned in an average of five years. Test the claim using 95% confidence level.

2. The young engineers in a manufacturing company claim that the mean annual income is greater than php 500,000. Test the claim using 95% confidence level

Answer 1

1. The parameter is average time in years.

$H_0:\mu=5$

$H_a:\mu\not=5$

This corresponds to a two-tailed (non directional) test.

The level of significance is $\alpha=0.05.$

2. The parameter is the mean annual income.

$H_0:\mu\le500000$

$H_a:\mu>500000$

This corresponds to a right-tailed one-tailed (directional) test.

The level of significance is $\alpha=0.05.$