Question

The manager of an automobile dealership is considering a new bonus plan designed to increase sales volume. Currently, the mean sales volume is 14 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.
B. Comment on the conclusion when H0 cannot be rejected.
1. No evidence that the new plan increases sales.
2. The research hypothesis ? > 24 is supported; the new plan increases sales.
C. Comment on the conclusion when H0 can be rejected.
1. No evidence that the new plan increases sales.
2. The research hypothesis ? > 24 is supported; the new plan increases sales.

Answer 1

A) Null Hypothesis: H0: μ ≤ 14

Alternative hypothesis: Ha: μ > 14

B) If the null hypothesis H0 is not rejected, it means that there is no sufficient evidence to support the claim that new bonus plan increases

sales volume.

C) If the null hypothesis is rejected, it means there is sufficient evidence to support the claim that the new bonus plan increases sales volume

Explanation:

A) We are told that the mean sales volume is 14 automobiles per month.

The hypotheses is defined as follows;

Null Hypothesis: H0: μ ≤ 14

Alternative hypothesis: Ha: μ > 14

B) If the null hypothesis H0 is not rejected, it means that there is no sufficient evidence to support the claim that new bonus plan increases

sales volume.

C) If the null hypothesis is rejected, it means there is sufficient evidence to support the claim that the new bonus plan increases sales volume.