Your investment executive claims that the average yearly rate of return on the stocks she recommends is at least 10.0%. You plan on taking a sample to test her claim. The correct set of hypotheses is A) H0: μ 10.0% C) H0: μ 10.0% Ha: μ ≤ 10.0% D) H0: μ ≥ 10.0% Ha: μ

Question

Your investment executive claims that the average yearly rate of return on the stocks she recommends is at least 10.0%. You plan on taking a sample to test her claim. The correct set of hypotheses is A) H0: μ < 10.0% Ha: μ ≥ 10.0% B) H0: μ ≤ 10.0% Ha: μ > 10.0% C) H0: μ > 10.0% Ha: μ ≤ 10.0% D) H0: μ ≥ 10.0% Ha: μ < 10.0%

Quizplus · Accepted Answer

The null hypothesis (H0) should reflect the claim being tested, which is that the average rate of return is at least 10.0%. Therefore, H0: μ ≥ 10.0%. The alternative hypothesis (Ha) is the opposite of the null, so Ha: μ < 10.0%.

Your Investment Executive Claims That the Average Yearly Rate of Return