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 prior to the tax cuts.
The hypotheses are as follows:
Null hypothesis: unemployment rate
Alternative hypothesis: unemployment rate
A) Rejecting the null hypothesis means there is evidence that the unemployment rate is less than .
Failing to reject the null hypothesis means there is insufficient evidence to conclude that the unemployment rate is less than .
B) Rejecting the null hypothesis means there is insufficient evidence that the unemployment rate is equal to .
Failing to reject the null hypothesis means there is insufficient evidence to conclude that the unemployment rate is equal to .
C) Rejecting the null hypothesis means there is evidence that the unemployment rate is not equal to .
Accepting the null hypothesis means there is evidence to conclude that the unemployment rate is equal to .
D) Rejecting the null hypothesis means there is evidence that the unemployment rate is less than .
Accepting the null hypothesis means there is evidence to conclude that the unemployment rate is equal to .
Correct Answer:
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