# develop null and alternative hypotheses

PiggyBank has narrowed its options down to two incentive plans: A. cash back when the consumer makes an online purchase; and B. cash back when the consumer makes a purchase at a clothing store. The bank doesn't know whether consumers would shop online more than at clothing stores.

Information Experts has placed you in a group to develop null and alternative hypotheses to help the bank determine which option would provide the best incentive to consumers. Work with your group members to develop the null and alternative hypotheses. As a group, write a brief memo to the PiggyBank product development team describing your hypotheses and explaining how you arrived at them.

Please help me with the ideas.

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#### Solution Preview

The null hypothesis is the hypothesis that is based on the available information. It usually involves having a mean or a proportion equal to some number, or, in the case of comparing two groups (like this problem), having the means of two groups equal to each other.

The alternative hypothesis is the hypothesis that you might guess is true. You need some evidence to support this hypothesis before you can assume that it is true. The null hypothesis is ...

#### Solution Summary

The solution defines "null hypothesis" and "alternative hypothesis" and states the null and alternative hypotheses for the example in the assignment.