A Hypothesis Test Is to Be Performed $6.3 \%$ Prior to the Tax Cuts

question 93

Multiple Choice

A hypothesis test is to be performed. Describe the two possible outcomes of the test using the context of the givensituation.
-The governor of a state claims that since his tax cuts have taken effect, the unemployment rate has dropped. The unemployment rate in the state had been $6.3 \%$ prior to the tax cuts.
The hypotheses are as follows:
Null hypothesis: unemployment rate $= 6.3 \%$
Alternative hypothesis: unemployment rate $< 6.3 \%$

• A) Rejecting the null hypothesis means there is evidence that the unemployment rate is less than \(6.3 \%\).
• Failing to reject the null hypothesis means there is insufficient evidence to conclude that the unemployment rate is less than \(6.3 \%\).
• B) Rejecting the null hypothesis means there is insufficient evidence that the unemployment rate is equal to \(6.3 \%\).
• Failing to reject the null hypothesis means there is insufficient evidence to conclude that the unemployment rate is equal to \(6.3 \%\).
• C) Rejecting the null hypothesis means there is evidence that the unemployment rate is not equal to \(6.3 \%\).
• Accepting the null hypothesis means there is evidence to conclude that the unemployment rate is equal to \(6.3 \%\).
• D) Rejecting the null hypothesis means there is evidence that the unemployment rate is less than \(6.3 \%\).
• Accepting the null hypothesis means there is evidence to conclude that the unemployment rate is equal to \(6.3 \%\).

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