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Stating Case Study Null and Alternative Hypothesis

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1. A decade-old study found that the proportion of high school seniors who felt that "getting rich" was an important personal goal was 73% . Suppose that we have reason to believe that this proportion has changed, and we wish to carry out a hypothesis test to see if our belief can be supported. State the null hypothesis Ho and the alternative hypothesis H1 that we would use for this test.

2. The records of a casualty insurance company show that, in the past, its clients have had a mean of 1.7 auto accidents per day with a variance of 0.0036. The actuaries of the company claim that the variance of the number of accidents per day is no longer equal to 0.0036. Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis H0 and the alternative hypothesis H1 that we would use for this test.

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This response states the null hypothesis and alternative hypotheses for different case studies.

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1. A decade-old study found that the proportion of high school seniors who felt that "getting rich" was an important personal goal was 73% . Suppose that we have reason to believe that this proportion has changed, and we wish to carry out a hypothesis test to see if our ...

Solution provided by:
Changping Wang, MA
Education
  • BSc , Wuhan Univ. China
  • MA, Shandong Univ.
Recent Feedback
  • "Your solution, looks excellent. I recognize things from previous chapters. I have seen the standard deviation formula you used to get 5.154. I do understand the Central Limit Theorem needs the sample size (n) to be greater than 30, we have 100. I do understand the sample mean(s) of the population will follow a normal distribution, and that CLT states the sample mean of population is the population (mean), we have 143.74. But when and WHY do we use the standard deviation formula where you got 5.154. WHEN & Why use standard deviation of the sample mean. I don't understand, why don't we simply use the "100" I understand that standard deviation is the square root of variance. I do understand that the variance is the square of the differences of each sample data value minus the mean. But somehow, why not use 100, why use standard deviation of sample mean? Please help explain."
  • "excellent work"
  • "Thank you so much for all of your help!!! I will be posting another assignment. Please let me know (once posted), if the credits I'm offering is enough or you ! Thanks again!"
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