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A Hypothesis Test Is to Be Performed 6.3%6.3 \% Prior to the Tax Cuts

Question 208

Multiple Choice

A hypothesis test is to be performed. Describe the two possible outcomes of the test using the context of the givensituation.
-The governor of a state claims that since his tax cuts have taken effect, the unemployment rate has dropped. The unemployment rate in the state had been 6.3%6.3 \% prior to the tax cuts.
The hypotheses are as follows:
Null hypothesis: unemployment rate =6.3%= 6.3 \%
Alternative hypothesis: unemployment rate <6.3%< 6.3 \%


A) Rejecting the null hypothesis means there is evidence that the unemployment rate is less than 6.3%6.3 \% .

Failing to reject the null hypothesis means there is insufficient evidence to conclude that the unemployment rate is less than 6.3%6.3 \% .
B) Rejecting the null hypothesis means there is insufficient evidence that the unemployment rate is equal to 6.3%6.3 \% .
Failing to reject the null hypothesis means there is insufficient evidence to conclude that the unemployment rate is equal to 6.3%6.3 \% .
C) Rejecting the null hypothesis means there is evidence that the unemployment rate is not equal to 6.3%6.3 \% .
Accepting the null hypothesis means there is evidence to conclude that the unemployment rate is equal to 6.3%6.3 \% .
D) Rejecting the null hypothesis means there is evidence that the unemployment rate is less than 6.3%6.3 \% .
Accepting the null hypothesis means there is evidence to conclude that the unemployment rate is equal to 6.3%6.3 \% .

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