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 H_a: μ ≤ 5 D) H₀: μ ≥ 5 H_a: 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 H_a: μ ≤ 5 B) H₀: μ ≤ 5 H_a: μ > 5 C) H₀: μ > 5 H_a: μ ≤ 5 D) H₀: μ ≥ 5 H_a: μ < 5

Quizplus · Accepted Answer

The null hypothesis should be that there is no difference in the mean sales rate before and after the bonus plan, which is μ = 5. The alternative hypothesis should be that the bonus plan has an effect on the mean sales rate, which is μ > 5 since the goal is to increase sales. Therefore, the correct set of hypotheses for testing the effect of the bonus plan is H₀: μ ≤ 5 H_a: μ > 5 (Choice B).

The Manager of an Automobile Dealership Is Considering a New