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Question of the Week: Level 1 - Quantitative Methods

MarkMeldrumMarkMeldrum OntarioPosts: 28 Associate
edited March 25 in Level 1 Questions
Which set of hypotheses is incorrectly formulated?

Question of the Week: Level 1 - Quantitative Methods 11 votes

H0: θ < θ0 versus Ha: θ > θ0
81% 9 votes
H0: θ ≥ θ0 versus Ha: θ < θ0
9% 1 vote
H0: θ ≤ θ0 versus Ha: θ > θ0
9% 1 vote

Comments

  • MarkMeldrumMarkMeldrum OntarioPosts: 28 Associate

    Option A is incorrectly stated since the appropriate formulation should be:  H0: θ ≤ θ0 versus Ha: θ >θ0.

    We state the null and alternative hypotheses such that they account for all possible values of the parameter.

    Option A does not account for the condition that θ = θ0.

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