An accounting firm has been hired by a large computer company to determine whether the proportion of accounts receivables with errors in one division (Division 1) exceeds that of the second division (Division 2). The managers believe that such a difference may exist because of the lax standards employed by the first division. The null and alternative hypotheses that will be tested are: H0 : μ1 ≥ μ2 Ha : μ1

Question

An accounting firm has been hired by a large computer company to determine whether the proportion of accounts receivables with errors in one division (Division 1) exceeds that of the second division (Division 2). The managers believe that such a difference may exist because of the lax standards employed by the first division. The null and alternative hypotheses that will be tested are: H0 : μ1 ≥ μ2 Ha : μ1 < μ2

Quizplus · Accepted Answer

The correct null hypothesis (H0) should state there is no difference or the opposite of what is being tested for, so it should be H0: μ1 ≤ μ2, and the alternative hypothesis (Ha) should reflect the test for a difference, so it should be Ha: μ1 > μ2, if the belief is that Division 1 has more errors than Division 2.

An Accounting Firm Has Been Hired by a Large Computer