Write down the null and alternative hypotheses that are being tested. Ho: Ha:

Question

It has been reported that the average credit card debt for college seniors is $3258. The student senate at a university in a large city feels that their seniors have a debt greater than this, so it conducts a study of randomly selected seniors and finds that their average debt is $3287. Based on the data collected, the p-value is found to be .07. 9

Answer 1

The null Hypothesis is equal to the the average of the entire population based on the study conducted. Ho: µ = $3258 because the study is based on the entire population of seniors.

 

The Alternative Hypothesis is determined based on a study in a controlled environment and it could be greater than, less than, or no difference at all Ha: µ > $3258 because the average based on the randomly selected seniors at a university in a large city is $3287 which is greater than $3258.

 

Always remember Null and Alternative hypothesis deals with the average.