The manager of an automobile dealership is considering a new bonus plan in order to increase sales. Currently, the mean sales rate per salesperson is five automobiles per month. The correct set of hypotheses for testing the effect of the bonus plan is A) H0: μ 5 C) H0: μ 5 Ha: μ ≤ 5 D) H0: μ ≥ 5 Ha: μ

Question

The manager of an automobile dealership is considering a new bonus plan in order to increase sales. Currently, the mean sales rate per salesperson is five automobiles per month. The correct set of hypotheses for testing the effect of the bonus plan is A) H0: μ < 5 Ha: μ ≤ 5 B) H0: μ ≤ 5 Ha: μ > 5 C) H0: μ > 5 Ha: μ ≤ 5 D) H0: μ ≥ 5 Ha: μ < 5

Quizplus · Accepted Answer

The manager's goal is to increase sales, which means they want the mean sales rate per salesperson to be greater than five. Therefore, the null hypothesis should state that the mean is less than or equal to five, and the alternative hypothesis should state that the mean is greater than five. Option B is the only one that correctly reflects this.

The Manager of an Automobile Dealership Is Considering a New