JC Penney is a large retailer with hundreds of outlets across the United States. An executive manager is interested in how promotional spending affects quarterly sales figures in North Carolina where sales have been dismal in a number of quarters. Her hypothesis is that promotional spending does not affect quarterly sales in North Carolina. What is a null hypothesis in a research study based upon?
A)educated guess about a population study
B)educated guess about a sample study
C)educated guess about a population parameter
D)educated guess about a sample statistic

Question

Quizplus · Accepted Answer

A null hypothesis in a research study is based upon an educated guess about a population parameter
Key Takeaway: Null hypotheses are educated guesses about a population parameter. In this example, all JC Penney stores in North Carolina are the population parameter. Due to cost and time restrictions, this executive may choose about 20 stores from the state to study. The results from this study will be used to accept or reject the null hypothesis about stores in the entire state.

JC Penney Is a Large Retailer with Hundreds of Outlets