Answer:
<u>Null Hypothesis,</u>
:
14 automobiles per month
<u>Alternate Hypothesis,</u>
:
> 14 automobiles per month
Step-by-step explanation:
We are given that the manager of an automobile dealership is considering a new bonus plan designed to increase sales volume. Currently, the mean sales volume is 14 automobiles per month.
The manager wants to conduct a research study to see whether the new bonus plan increases sales volume.
<em>Let </em>
<em> = population mean sales volume after the new bonus plan </em>
So, <u>Null Hypothesis,</u>
:
14 automobiles per month
<u>Alternate Hypothesis,</u>
:
> 14 automobiles per month
Here, <u><em>null hypothesis states that</em></u> the new bonus plan does not increase the sales volume as the sales is less than or equal to 14 automobiles per month.
And <em><u>alternate hypothesis states that</u></em> the new bonus plan increases the sales volume as the sales is more than 14 automobiles per month.
<em>Now, conclusion on when the null hypothesis (</em>
<em>) can be rejected and when it cannot be rejected is based on two perspectives;</em>
<em />
- <u>From test statistics point of view;</u>
- If the test statistics is more than the critical value of any respective distribution, then we will reject our null hypothesis.
- If the test statistics is less than the critical value of any respective distribution, then we cannot reject our null hypothesis.
2. <u>From P-value point of view;</u>
- If the p-value of the test statistics is more than level of significance (
), then we will not reject our null hypothesis.
- If the p-value of the test statistics is less than level of significance (
), then we will reject our null hypothesis.