DA0-001 · Question #95
Andy is a pricing analyst for a retailer. Using a hypothesis test, he wants to assess whether people who receive electronic coupons spend more on average. What should Andy's null hypothesis be?
The correct answer is C. People who receive electronic coupons do not spend more on average. In hypothesis testing, the null hypothesis (H₀) always represents the default position of 'no effect' or 'no difference.' Andy is testing whether coupon recipients spend more, so the null hypothesis must state the opposite of what he is trying to prove: that people who receive…
Question
Andy is a pricing analyst for a retailer. Using a hypothesis test, he wants to assess whether people who receive electronic coupons spend more on average. What should Andy's null hypothesis be?
Options
- APeople who receive electronic coupons spend more on average.
- BPeople who receive electronic coupons spend less on average.
- CPeople who receive electronic coupons do not spend more on average.
- DPeople who do not receive electronic coupons spend more on average.
How the community answered
(55 responses)- A7% (4)
- B13% (7)
- C76% (42)
- D4% (2)
Explanation
In hypothesis testing, the null hypothesis (H₀) always represents the default position of 'no effect' or 'no difference.' Andy is testing whether coupon recipients spend more, so the null hypothesis must state the opposite of what he is trying to prove: that people who receive electronic coupons do NOT spend more on average. The alternative hypothesis (H₁) would be that they do spend more. Options A and B represent directional claims that belong to the alternative hypothesis, and Option D is unrelated to the test's focus.
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