We wish to test the null hypothesis that the employee benefits (in millions) of all companies...

We wish to test the null hypothesis that the employee benefits (in millions) of all companies in a given industry follows a normal distribution with mean 10 and variance 4. In order to do so, we have observed the benefits for 100 companies, from which 30 had benefits smaller than 8, 50 had benefits between 8 and 13, and the remaining 20 firms had benefits larger than 13. The chi-square test statistic is given by

a. 2.53

b.7.38

c. 30.60

d. 100

e. 48.87

Expert Solution

orchestra answered 2 years ago

Why do we test the null hypothesis and not our research hypothesis?

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