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Question of the Week: Level 1 - Quantitative Methods
Which set of hypotheses is incorrectly formulated?
Question of the Week: Level 1 - Quantitative Methods 11 votes
H0: θ < θ0 versus Ha: θ > θ0
H0: θ ≥ θ0 versus Ha: θ < θ0
H0: θ ≤ θ0 versus Ha: θ > θ0
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Comments
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.