Question

The charitable foundation for a large metropolitan hospital is conducting a study to characterize its donor base. In the past, most donations have come from relatively wealthy individuals; the average annual donor income in the most recent survey was right at $100,000. The foundation believes the average has now increased. A random sample of 200 current donors showed a mean annual income of $103,157 and a standard deviation of $27,498. To perform this study, we should form a null hypothesis stating that the average is

Answer 1

The null hypothesis will be that the average annual donor income is less or equal to $ 100,000

Explanation:

The claim is mostly treated as alternate hypothesis .

In this question the claim is given as the average annual donor income has increased therefore it is written as

Ha: u > 100,000

The null hypothesis is reverse of the alternate hypothesis

H0: u ≤ 100,000

The null hypothesis will be that the average annual donor income is less or equal to $ 100,000