MATLAB: An Introduction with Applications
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ISBN: 9781119256830
Author: Amos Gilat
Publisher: John Wiley & Sons Inc
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The records of a casualty insurance company show that, in the past, its clients have had a mean of 1.8 auto accidents per day with a standard deviation of 0.04
. The actuaries of the company claim that the standard deviation of the number of accidents per day is no longer equal to
. Suppose that we want to carry out a hypothesis test to see if there is support for the actuaries' claim. State the null hypothesis H0 and the alternative hypothesis
. The actuaries of the company claim that the standard deviation of the number of accidents per day is no longer equal to
0.04
H1 that we would use for this test.
|
H0
?
H1
?
|
Expert Solution
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A statistical hypothesis is a theory of making the decision about the population parameters using sampling and the concept of probability.
The null hypothesis is the hypothesis that is being tested for the possible rejection, under the assumption that it is true.
An alternative hypothesis is a hypothesis that is accepted when the null hypothesis is rejected.
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