Hypotheses test for incentive plan

Reference no: EM1385788

You are looking for a way to incentivize the sales reps that you are in charge of. You design an incentive plan as a way to help increase in their sales. To evaluate this innovative plan, you take a random sample of your reps, and their weekly incomes before and after the plan were recorded. You calculate the difference in income as (after incentive plan - before incentive plan). You want to test whether income after the incentive plan is different from income before the incentive plan. What are the hypotheses for this test?

1) HO: μD = 0
HA: μD ≠ 0

2) HO: μD ≤ 0
HA: μD > 0

3) HO: μD ≠ 0
HA: μD = 0

4) HO: μD > 0
HA: μD ≤ 0

5) HO: μD ≥ 0
HA: μD < 0

Reference no: EM1385788

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