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A report on a certain fast food restaurant states that μ, the mean order total, is...

A report on a certain fast food restaurant states that μ, the mean order total, is $9. The manager of the restaurant believes the mean is higher. A random sample of orders will be selected. The sample mean x¯ will be calculated and used in a hypothesis test to investigate the belief. Which of the following is the correct set of hypotheses?

H0:x¯=$9Ha:x¯≠$9 A

H0:x¯=$9Ha:x¯>$9 B

H0:μ=$9Ha:μ≠$9 C

H0:μ=$9Ha:μ>$9 D

H0:μ=$9Ha:μ<$9 E

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Answer #1

It is a right tailed test, since manager wants to test whether mean is greater than $9. Thus, the correct null and alternative hypotheses are as follows:

H0: μ=$9 Ha: μ>$9 D

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