For each of the following situations, write the null and alternative hypotheses in terms of parameter values.

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For each of the following situations, write the null and alternative hypotheses in terms of parameter values. Example: We want to know if the proportion of up days in the stock market is 50%. Answer: Let p = the proportion of up days. H0:p = 0.5 vs. HA :p ≠ 0.5.
a) A casino wants to know if their slot machine really delivers the 1 in 100 win rate that it claims.
b) A pharmaceutical company wonders if their new drug has a cure rate different from the 30% reported by the placebo.
c) A bank wants to know if the percentage of customers using their website has changed from the 40% that used it before their system crashed last week.
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Business Statistics

ISBN: 9780321925831

3rd Edition

Authors: Norean Sharpe, Richard Veaux, Paul Velleman

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