A producer of extruded plastic products finds that his mean

A producer of extruded plastic products finds that his mean daily inventory is 1148 pieces. A new marketing policy has been put into effect and it is desired to test the null hypothesis that the mean daily inventory remains unchanged. Indicate what alternative hypothesis should be used if: (3 pts) a) It is desired to prove that the new policy reduces inventory. b) It is desired to know whether or not the new policy changes the mean daily inventory. c) The new policy will remain in effect unless it can be proved that it causes an increase in inventory.

Solution

Note that we desire to prove the alternative hypothesis.

Thus,

a)

Ha: u < 1148

b)

Ha: u =/= 1148

c)

Ha: u > 1148