Graphical Analysis In Exercises 57–60, you are given a null hypothesis and three confidence intervals that represent three samplings. Determine whether each confidence interval indicates that you should reject H0. Explain your reasoning.
Table of contents
- 1. Intro to Stats and Collecting Data55m
- 2. Describing Data with Tables and Graphs1h 55m
- 3. Describing Data Numerically1h 45m
- 4. Probability2h 16m
- 5. Binomial Distribution & Discrete Random Variables2h 33m
- 6. Normal Distribution and Continuous Random Variables1h 38m
- 7. Sampling Distributions & Confidence Intervals: Mean1h 53m
- 8. Sampling Distributions & Confidence Intervals: Proportion1h 12m
- 9. Hypothesis Testing for One Sample2h 19m
- 10. Hypothesis Testing for Two Samples3h 26m
- 11. Correlation1h 6m
- 12. Regression1h 35m
- 13. Chi-Square Tests & Goodness of Fit1h 57m
- 14. ANOVA1h 0m
9. Hypothesis Testing for One Sample
Steps in Hypothesis Testing
Problem 7.RE.9a
Textbook Question
In Exercises 7–10, (a) state the null and alternative hypotheses and identify which represents the claim.
A nonprofit consumer organization says that the standard deviation of the starting prices of its top-rated vehicles for a recent year is no more than $2900.

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Step 1: Understand the context of the problem. The nonprofit consumer organization claims that the standard deviation of the starting prices of its top-rated vehicles is no more than $2900. This means the claim is about the population standard deviation (σ).
Step 2: Define the null hypothesis (H₀). The null hypothesis represents the statement of no effect or no difference, and it often includes equality. In this case, H₀: σ ≤ 2900, as the claim is that the standard deviation is no more than $2900.
Step 3: Define the alternative hypothesis (H₁). The alternative hypothesis represents the statement that contradicts the null hypothesis. Here, H₁: σ > 2900, as it challenges the claim by suggesting the standard deviation is greater than $2900.
Step 4: Identify which hypothesis represents the claim. Since the claim is that the standard deviation is no more than $2900, the null hypothesis (H₀: σ ≤ 2900) represents the claim.
Step 5: Summarize the hypotheses. The null hypothesis is H₀: σ ≤ 2900, and the alternative hypothesis is H₁: σ > 2900. The null hypothesis represents the claim made by the nonprofit consumer organization.

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Key Concepts
Here are the essential concepts you must grasp in order to answer the question correctly.
Null Hypothesis
The null hypothesis (H0) is a statement that indicates no effect or no difference, serving as a default position in hypothesis testing. In this context, it asserts that the standard deviation of the starting prices of the vehicles is $2900 or less, suggesting that there is no significant variation in prices beyond this threshold.
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Step 1: Write Hypotheses
Alternative Hypothesis
The alternative hypothesis (H1) is a statement that contradicts the null hypothesis, indicating the presence of an effect or difference. For this scenario, it posits that the standard deviation of the starting prices exceeds $2900, representing the claim made by the nonprofit consumer organization that there is significant variability in vehicle prices.
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Step 1: Write Hypotheses
Standard Deviation
Standard deviation is a statistical measure that quantifies the amount of variation or dispersion in a set of values. A low standard deviation indicates that the values tend to be close to the mean, while a high standard deviation suggests a wider spread of values. In this question, it is crucial for assessing the variability of starting prices among the top-rated vehicles.
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Calculating Standard Deviation
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