Census Bureau data show that the mean household income in the area served by a s

Question

Census Bureau data show that the mean household income in the area served by a shopping mall is $72,500 per year. A market research firm questions shoppers at the mall. The researchers suspect the mean household income of mall shoppers is higher than that of the general population.

State H_o and H_a. Explain.

Ho: Null Hypothesis: mean household income of mall shoppers is $72,500/year

Ha: Alternative Hypothesis: mean household income of mall shoppers is greater than $72,500

How do I explain this fully?

Explanation / Answer

Census Bureau claims that mean household income in the area served by a shopping mall is $72,500 per year but we suspect the claim so we want to test it so our null hypothesis is what we want to test i.e.  mean household income of mall shoppers is $72,500/year. And our alternate hypothesis is what we believe/suspect is true ie mean household income of mall shoppers is greater than $72,500.

so,

H0: µ=42,500$
Ha: µ>42,500$

I hope it helps!

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