Identifying Null and Alternative Hypotheses

Easy Hypothesis Testing Null And Alternative Hypotheses

A research analyst is conducting a study on the average return of a certain technology stock. The analyst wishes to test whether the average return is significantly different from 8%. The hypotheses for the test are stated as follows:

Null Hypothesis ($H_0$): The average return is equal to 8%.

Alternative Hypothesis ($H_a$): The average return is not equal to 8%.

Based on this information, which of the following correctly identifies the null and alternative hypotheses?

Null Hypothesis ($H_0$): Average return < 8%; Alternative Hypothesis ($H_a$): Average return ≥ 8%.

Null Hypothesis ($H_0$): Average return = 8%; Alternative Hypothesis ($H_a$): Average return ≠ 8%.

Null Hypothesis ($H_0$): Average return > 8%; Alternative Hypothesis ($H_a$): Average return < 8%.

Hint

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% Correct88%