Jennifer Cantu, VP of Customer Services at Tri-City Auto Insurance Inc., monitors the claims processing time of the claims division.Her standard includes "a mean processing time of 5 days or less." Each week, her staff checks for compliance by analyzing a random sample of 60 claims.Jennifer's null hypothesis is ___. A)$\mu$ 5 B)$\sigma$ 5 C)n = 60 D)$\mu$

Question

Jennifer Cantu, VP of Customer Services at Tri-City Auto Insurance Inc., monitors the claims processing time of the claims division.Her standard includes "a mean processing time of 5 days or less." Each week, her staff checks for compliance by analyzing a random sample of 60 claims.Jennifer's null hypothesis is ___.
A)$\mu$ > 5
B)$\sigma$ > 5
C)n = 60
D)$\mu$ < 5
E)$\mu$ ≤ 5

Quizplus · Accepted Answer

The null hypothesis represents the status quo or the condition that is assumed to be true unless evidence suggests otherwise. In this case, Jennifer's standard is a mean processing time of 5 days or less, so the null hypothesis is that the mean processing time $\mu$ is less than or equal to 5 days.

Jennifer Cantu, VP of Customer Services at Tri-City Auto Insurance μ\muμ

Jennifer Cantu, VP of Customer Services at Tri-City Auto Insurance $\mu$