The cost of off-campus living for U of O students is normally distributed. The Office of the Registrar estimates that on average
it costs students $1,225 per month to live off-campus. A student group suspects that the average cost of living is lower than what is listed by the registrars office. They decide to conduct a hypothesis test. The student group randomly surveys 21 students and finds that they pay an average of $1,150 per month with a standard deviation of $400. What is the alternative hypothesis
The alternative hypothesis in carrying out a statistical test could be explained as a notion which aims to displace or rival an initial position, the null hypothesis.
When declaring an hypothesis, the statement compares the initial or population mean in the hypothesis statement and not the result or outcome of the sample statistic.
In the scenario above :
The null is of the notion that :
H0 : μ = 1225 ;
Hence, the stance of the alternative which is that the mean is lower or less will be written as :
