A hypothesis test is to be performed. State the null and alternative hypotheses. -The governor of a state claims that since his tax cuts have taken effect, the unemployment rate has dropped. The unemployment rate in the state had been $6.3 \%$ prior to the tax cuts. A) Null hypothesis: unemployment rate $= 6.3 \%$ Alternative hypothesis: unemployment rate $ 6.3 \%$ Alternative hypothesis: unemployment rate $

Question

A hypothesis test is to be performed. State the null and alternative hypotheses.
-The governor of a state claims that since his tax cuts have taken effect, the unemployment rate has dropped. The unemployment rate in the state had been $6.3 \%$ prior to the tax cuts.
A) Null hypothesis: unemployment rate $= 6.3 \%$
Alternative hypothesis: unemployment rate $< 6.3 \%$
B) Null hypothesis: unemployment rate $> 6.3 \%$
Alternative hypothesis: unemployment rate $< 6.3 \%$
C) Null hypothesis: unemployment rate $= 6.3 \%$
Alternative hypothesis: unemployment rate $\leq 6.3 \%$
D) Null hypothesis: unemployment rate $< 6.3 \%$
Alternative hypothesis: unemployment rate $= 6.3 \%$

Quizplus · Accepted Answer

The null hypothesis typically states that there is no effect or no difference, so it would assert that the unemployment rate is equal to the pre-tax cut level of 6.3%. The alternative hypothesis is what the governor claims, suggesting the unemployment rate has dropped, hence it is less than 6.3%.

A Hypothesis Test Is to Be Performed 6.3%6.3 \%6.3% Prior to the Tax Cuts

A Hypothesis Test Is to Be Performed $6.3 \%$ Prior to the Tax Cuts