Answer to Question #345577 in Statistics and Probability for Cecel

Question

Parameter, null hypothesis: in words:, alternative hypothesis in words, directional or non directional, level of significance: 1. The young engineers in a manufacturing company claim that the mean annual income is greater than php 500,000. Test the claim using 95% confidence level

Answer 1

Parameter is the mean annual income.

$H_0:$ the mean annual income is no more than php 500,000.

$H_a:$ the mean annual income is greater than php 500,000.

$H_0:\mu\le 500000.$

$H_a:\mu>500000.$

This corresponds to a right-tailed test, directional test.

Based on the information provided, the significance level is $\alpha = 0.05.$