The owners of an industrial plant want to determine which of two types of fuel (gas or electricity) will produce more useful energy at a lower cost. The cost is measured by plant investment per Delivered quad ($ invested /quadrillion BTUs). The smaller this number, the less the industrial Plant pays for delivered energy. Suppose we wish to determine if there is a difference in the Average investment/quad between using electricity and using gas. Our null and alternative Hypotheses would be: A) $H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0$ vs. $H _ { a } : \left( \mu _ { e } - \mu _ { g } \right) \neq 0$ B) $H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0$ vs. $H _ { a } : \left( \mu _ { e } - \mu _ { g } \right) 0$ D) $H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0$ vs. $H _ { a } : \left( \mu _ { e } - \mu _ { g } \right) = 0$

Question

The owners of an industrial plant want to determine which of two types of fuel (gas or electricity) will produce more useful energy at a lower cost. The cost is measured by plant investment per
Delivered quad ($ invested /quadrillion BTUs). The smaller this number, the less the industrial
Plant pays for delivered energy. Suppose we wish to determine if there is a difference in the
Average investment/quad between using electricity and using gas. Our null and alternative
Hypotheses would be: 
A) $H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0$ vs. $H _ { a } : \left( \mu _ { e } - \mu _ { g } \right) \neq 0$
B) $H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0$ vs. $H _ { a } : \left( \mu _ { e } - \mu _ { g } \right) < 0$
C) $H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0$ vs. $H _ { a } : \left( \mu _ { e } - \mu _ { g } \right) > 0$
D) $H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0$ vs. $H _ { a } : \left( \mu _ { e } - \mu _ { g } \right) = 0$

Quizplus · Accepted Answer

The null hypothesis ($H_0$) states there is no difference in the average investment/quad between using electricity and gas, while the alternative hypothesis ($H_a$) suggests there is a difference, without specifying the direction of the difference.

The Owners of an Industrial Plant Want to Determine Which H0:(μe−μg)=0H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0H0​:(μe​−μg​)=0

The Owners of an Industrial Plant Want to Determine Which $H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0$