Answer to Question #349683 in Statistics and Probability for jorge

Question

A MNP publisher of Statistics and Probability textbooks claims that the

average price of all hardbound textbooks is Php 500. A group of students

believes that the actual mean is higher and wishes to test their belief.

Answer 1

The parameter is average price of all hardbound textbooks $\mu.$

The following null and alternative hypotheses need to be tested:

$H_0:$ the average price of all hardbound textbooks is no more than 500.

$H_a:$ the average price of all hardbound textbooks is more than 500.

$H_0:\mu\le500$

$H_a:\mu>500$

This corresponds to a one-tailed, directional, right-tailed test for mean.