Question

The manager of the Danvers-Hilton Resort Hotel stated that the mean guest bill for a weekend is $600 or less. A member of the hotel's accounting staff noticed that the total charges for guest bills have been increasing in recent months. The accountant will use a sample of weekend guest bills to test the manager's claim.

a. Which form of the hypotheses should be used to test the manager's claim?
H0:
greater than or equal to 600
greater than 600
less than or equal to 600
less than 600
equal to 600
not equal to 600
Ha: Select
greater than or equal to 600
greater than 600
less than or equal to 600
less than 600
equal to 600
not equal to 600
b. When H0 cannot be rejected, can we conclude that the manager's claim is wrong?
Yes
No
c. When H0 can be rejected, can we conclude that the manager's claim is wrong?
Yes
No

Answer 1

(a) Null Hypothesis,
`H_0` :
`\mu \leq` $600

Alternate Hypothesis,
`H_A` :
`\mu` > $600

(b) When H0 cannot be rejected, we conclude that the manager's claim is correct.

(c) When H0 can be rejected, we conclude that the manager's claim is wrong.

Explanation:

We are given that the manager of the Danvers-Hilton Resort Hotel stated that the mean guest bill for a weekend is $600 or less.

The accountant will use a sample of weekend guest bills to test the manager's claim.

Let
`\mu` = population mean guest bill for a weekend

(a) Null Hypothesis,
`H_0` :
`\mu \leq` $600

Alternate Hypothesis,
`H_A` :
`\mu` > $600

Here null hypothesis states that the mean guest bill for a weekend is $600 or less.

On the other hand, alternate hypothesis states that the mean guest bill for a weekend is more than $600.

(b) When the null hypothesis (
`H_0`) cannot be rejected, then the correct conclusion would be: We conclude that the mean guest bill for a weekend is $600 or less which means that the manager's claim is correct.

(c) When the null hypothesis (
`H_0`) can be rejected, then the correct conclusion would be: We conclude that the mean guest bill for a weekend is more than $600 which means that the manager's claim is wrong.