The average monthly rent for one-bedroom apartments in Chattanooga has been $700. Because of the downturn in the real estate market, it is believed that there has been a decrease in the average rental. The correct hypotheses to be tested are A) H0: μ ≥ 700 Ha: μ 700 Ha: μ ≤700 D) H0: μ

Question

The average monthly rent for one-bedroom apartments in Chattanooga has been $700. Because of the downturn in the real estate market, it is believed that there has been a decrease in the average rental. The correct hypotheses to be tested are
A) H0: μ ≥ 700 Ha: μ < 700
B) H0: μ = 700 Ha: μ ≠ 700
C) H0: μ > 700 Ha: μ ≤700
D) H0: μ < 700 Ha: μ ≥ 700

Quizplus · Accepted Answer

The null hypothesis (H0) should reflect the status quo or no change, which is that the average rent is at least $700. The alternative hypothesis (Ha) should reflect the belief or claim being tested, which is that the average rent has decreased to less than $700.

The Average Monthly Rent for One-Bedroom Apartments in Chattanooga Has