Question

Carpetland salespersons average $8000 per week in sales. Steve Contois, the firm's vice president, proposes a compensation plan with new selling incentives. Steve hopes that the results of a trial selling period will enable him to conclude that the compensation plan increases the average sales per salesperson. a. Develop the appropriate null and alternative hypotheses.

Answer 1

Null hypothesis: The average sales per salesperson of Carpetland is $8000 per week

Alternate hypothesis: The average sali per salesperson of Carpetland is greater than $8000 per week

Explanation:

The null hypothesis is a statement deduced from a population parameter which is subject to testing

The alternate hypothesis is a statement that negates the alternate hypothesis which is accepted if the null hypothesis is tested to be false