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 \(6.3 \%\).

---

Definitions:

Collective Bargaining Agreement

A written contract between an employer and a union representing the employees, detailing the terms of employment, wages, and workplace conditions.

Distributive Bargaining

A negotiation strategy focusing on dividing a fixed amount of resources, often leading to a win-lose scenario.

Labor Management Relationship

The dynamic interaction between labor forces, represented by unions or employees, and management teams within organizations, focusing on negotiation, conflict resolution, and cooperation.

Ideas

Mental representations or concepts that occur in the mind, serving as the building blocks for knowledge, creativity, and problem-solving.