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A commercial real estate company WOULD LIKE to test if the vacancy rate for warehouses is more than 8%. What is the correct null hypothesis?

a. mu <(or equal to) 8
b. mu >(or equal to) 8
c. p >(or equal to) 8
d. p >(or equal to) 8

User ZiMtyth
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1 Answer

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Final answer:

The correct null hypothesis for a test to see if the warehouse vacancy rate is more than 8% is: μ ≤ 8%. The null states there is no effect, while the alt hypothesis Ha: μ > 8% proposes a vacancy rate greater than 8%.

Step-by-step explanation:

The correct null hypothesis for testing if the vacancy rate for warehouses is more than 8% would be: μ ≤ 8%. The null hypothesis is always a statement of no effect or no difference, which means it should state that the vacancy rate is not greater than 8%. The alternative hypothesis would be Ha: μ > 8%, indicating that the vacancy rate is indeed greater than 8%.

In hypothesis testing, alpha (α) represents the probability threshold for rejecting the null hypothesis. If the p-value calculated from the test statistics is lower than alpha, the null hypothesis is rejected, suggesting evidence for the alternate hypothesis. However, if the p-value is greater, we fail to reject the null hypothesis, meaning there is insufficient evidence to support the claim that the vacancy rate is more than 8%.

User Kyuuuyki
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