Question

The manager of an automobile dealership is considering a new bonus plan designed to increase sales volume. Currently, the mean sales volume is automobiles per month. The manager wants to conduct a research study to see whether the new bonus plan increases sales volume. To collect data on the plan, a sample of sales personnel will be allowed to sell under the new bonus plan for a one-month period. a. Which form of the null and alternative hypotheses most appropriate for this situation

Answer 1

The question is incomplete. The complete question is :

The manager of an automobile dealership is considering a new bonus plan designed to increase sales volume. Currently, the mean sales volume is 24 automobiles per month. The manager wants to conduct a research study to see whether the new bonus plan increases sales volume. To collect data on the plan, a sample of sales personnel will be allowed to sell under the new bonus plan for a one-month period.

a. Which form of the null and alternative hypotheses most appropriate for this situation.

`$H_0$`: is (greater than or equal to 24/greater than 24/less than or equal to 24/less than 24/equal to 24/not equal to 24)

`$H_a$`: is (greater than or equal to 24/greater than 24/less than or equal to 24/less than 24/equal to 24/not equal to 24)

Solution :

It is given that the current mean sales volume in one month is 24 automobiles. The automobile dealership manager wants to conducts research study to check the increase in the sales volume due to the launch of a new bonus plan. So to collect the data on plan, sample of the sales personnel is allowed to sell for one month period only according to the new bonus plan.

Therefore the null hypothesis and the alternate hypothesis that most appropriates the situation is :

• 
  `$H_0 \leq 24$`
• 
  `$H_a > 24$`