Question

A revenue department is under orders to reduce the time small business owners spend filling out pension form ABC-5500. Previously the average time spent on the form was 5.2 hours. In order to test whether the time to fill out the form has been reduced, a sample of 60 small business owners who annually complete the form was randomly chosen, and their completion times recorded. The mean completion time for ABC-5500 form was 4.5 hours with a standard deviation of 1.6 hours.
Required:
In order to test that the time to complete the form has been reduced, state the appropriate null and alternative hypotheses.

Answer 1

Considering the situation described, we have that:

• The appropriate null hypotheses is $H_0: \mu = 5.2$.

• The appropriate alternative hypotheses is $H_1: \mu < 5.2$.

What are the hypotheses tested?

At the null hypotheses, it is tested if the mean has not been reduced, that is, it still is of 5.2 hours, hence:

$H_0: \mu = 5.2$.

At the alternative hypothesis, it is tested if the mean has been reduced, that is, it is now of less than 5.2 hours, hence:

$H_1: \mu < 5.2$

More can be learned about hypotheses tests at brainly.com/question/26454209