My Post:

The data I will need to test this claim are the sample size of both companies, the mean annual bonuses for both groups and the standard population variations of the annual bonuses

The hypotheses tests are given as:

H0: 1 - 2 = $100

H0: 1 - 2 > $100 (stated claim)

To do the hypothesis test, the following procedures are adhered to:

State the hypotheses and identify the claim as given above.

Find the critical value. At the given level of alpha, the critical value is 1.96

Compute the test value. Using the monthly means and the variance and standard deviation

Make the decision at the 0.05 level of significance.

Summarize the results:

Null Hypothesis (Ho)u1-u2 <30

Alternative Hypothesis (Ha)u1-u2>30

u1= population mean monthly benefit of workers

u2= population mean monthly benefits of disabled workers

Teacher Question:

Thank you for your post.The important thing to remember here is that the claim has to be identified and then we think about what the opposite of that claim would be.Since the claim is that the difference is greater than,the opposite is less than or equal to,so this would be the null hypothesis.

Null Hypothesis:difference between bonusesu1-u2<$100

Alternate Hypothesis:difference between bonusesu1-u2>$100

Does this make sense?Also,could you provide a little more detail as to which specific testing procedure you are using?