Formulate the Null and Alternative Hypothesis in Each Case

question 103

Essay

Formulate the null and alternative hypothesis in each case:
a.Ten years ago the average American drank 2.5 cups of coffee per day.You suspect that amount has changed since then.
b.A researcher at Ohio State University speculates that the average SAT score for entering freshmen is higher than the national average of 1,650.
c.The manager of the University of Iowa bookstore suspects the average amount of money a student spends on books is less than the reported $400.

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Definitions:

Risk Aversion

The tendency of individuals or entities to prefer outcomes with less uncertainty, avoiding risks in decision-making.

Economic Payoff

The financial return or profit resulting from an investment or action.

Bounded Rationality

The concept that when individuals make decisions, their rationality is limited by the information they have, the cognitive limitations of their minds, and the time available to make the decision.

Good Enough

A standard or condition that satisfies the basic requirements or criteria, without needing to be perfect.