Reference no: EM132463708
An NGO is concerned that low income people squander valuable disposable income on the lottery.
The SA Lotto claims that the average household income of those people playing the lottery is at least R37,000. Assume that the distribution of household income of those people playing the lottery is normally distributed with a standard deviation of R5,756. Suppose that for a sample of households, it is found that the average income was R 36,243. The NGO asks you to check whether this is statistically less then the Lotto's claim of R37000
What are the appropriate null and alternative hypotheses for your test? ( μ is the symbol for the mean)
A) H0 : μ = R37,000 and H1 : μ > R37,000
B) H0 : μ = R37,000 and H1 : μ ≠ R37,000
C) H0 : μ ≥ R37,000 and H1 : μ <R37,000
D) H0 : μ > R37,000 and H1 : μ ≤ R37,000