Question

insurance company a claims that its customers pay less for car insurance, on average, than customers of its competitor, company b. you wonder if this is true, so you decide to compare the average monthly costs of similar insurance policies from the two companies. for a random sample of 12 people who buy insurance from company a, the mean cost is $151 per month with a standard deviation of $14. for 9 randomly - selected customers of company b, you find that they pay a mean of $159 per month with a standard deviation of $12. assume that both populations are approximately normal and that the population variances are equal to test company as claim at the 0.05 level of significance. let customers of company a be population 1 and let customers of company b be population 2. step 1 of 3: state the null and alternative hypotheses for the test. fill in the blank below. $h_0:mu_1=mu_2$ $h_a:mu_1$ ____ $mu_2$ answer

Explanation:

Step1: Understand the claim

Company A claims its customers pay less than Company B's.

Step2: Define hypotheses

The null hypothesis $H_0$ is equality of means. The alternative hypothesis $H_a$ should reflect the claim of Company A (less - cost for Company A), so it's a one - tailed test.

Answer:

$H_0:\mu_1=\mu_2$
$H_a:\mu_1<\mu_2$