185k views
4 votes
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.

H0: 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)
Ha: 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)

1 Answer

2 votes

Final answer:

For the manager's situation, the proper setup for hypothesis testing is H0: μ ≤ 24 and Ha: μ > 24. This right-tailed test will determine if the new bonus plan leads to a sales volume greater than the current mean of 24 automobiles per month.

Step-by-step explanation:

The manager of an automobile dealership wants to test if a new bonus plan will increase sales volume. Currently, the mean sales volume is 24 automobiles per month. To determine the most appropriate null hypothesis (H0) and alternative hypothesis (Ha) for this situation, we need a setup that allows us to test if the sales volume after implementing the plan is greater than the existing mean sales volume.

Therefore, the null hypothesis should state that there is no increase and the alternative hypothesis should represent the possibility of an increase. Given that the current mean is 24, the hypotheses would be:

  • H0: μ ≤ 24 (The mean sales volume is less than or equal to 24 automobiles)
  • Ha: μ > 24 (The mean sales volume is greater than 24 automobiles)

Here, the null hypothesis sets the baseline that sales have not increased (or stayed the same), while the alternative hypothesis captures the manager's hope that sales will be higher under the new bonus plan. This is a right-tailed test since we are only interested in whether the sales volume has increased and not if it has changed in either direction.

User Arif
by
8.1k points