A financial analyst working for a financial consulting company wishes to find evidence that the average price-to-earnings ratio in the consumer industry is higher than the average price-to-earnings ratio in the banking industry. The alternative hypothesis is A) μ_consumer = μ_banking. B) μ_consumer ≤ μ_banking. C) μ_consumer μ_banking. D) μ_consumer

Question

A financial analyst working for a financial consulting company wishes to find evidence that the average price-to-earnings ratio in the consumer industry is higher than the average price-to-earnings ratio in the banking industry. The alternative hypothesis is A) μ_consumer = μ_banking. B) μ_consumer ≤ μ_banking. C) μ_consumer > μ_banking. D) μ_consumer < μ_banking. E) μ_consumer ≠ μ_banking.

Quizplus · Accepted Answer

In this case, the alternative hypothesis should illustrate that the average price-to-earnings ratio in the consumer industry is higher than the average price-to-earnings ratio in the banking industry.

A Financial Analyst Working for a Financial Consulting Company Wishes