Question

Question: What is the null and alternative hypothesis in this question? Thanks​​​​​​​

4. A real estate broker who a motel chain assures them that during the summer months on the average 4,000 cars pass by the property each day. Being suspicious that this figure might be a bit high, the management of the motel chain conducts its own study and obtains a mean of 3,838 cars and standard deviation of 486 cars for 36 days. What can they conclude is anxious to sell a piece of property to a) at the 5% level of significance? b) at the 1% level of significance?

Answer 1

Question asked:

What is the null and alternative hypothesis in this question?

Answer:
H0: Null Hypothesis: $\mu \geq$ 4,000

HA: Alternative Hypothesis: $\mu <$ 4000 (Claim)

EXPLANATION:

The management of the motel is suspicious that 4000 cars is high. So, the claim is: $\mu <$ 4000. This goes to the Alternative Hypothesis. The opposite of this, viz., $\mu \geq$ 4000 becomes the null hypothesis.