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The Owners of an Industrial Plant Want to Determine Which H0:(μeμg)=0H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0

Question 95

Multiple Choice

The owners of an industrial plant want to determine which of two types of fuel (gas or electricity) will produce more useful energy at a lower cost. The cost is measured by plant investment per delivered quad ($ invested /quadrillion BTUs) . The smaller this number, the less the industrial plant pays for delivered energy. Suppose we wish to determine if there is a difference in the average investment/quad between using electricity and using gas. Our null and alternative hypotheses would be:


A) H0:(μeμg) =0H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0 vs. Ha:(μeμg) <0H _ { a } : \left( \mu _ { e } - \mu _ { g } \right) < 0
B) H0:(μeμg) =0H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0 vs. Ha:(μeμg) =0H _ { a } : \left( \mu _ { e } - \mu _ { g } \right) = 0
C) H0:(μeμg) =0H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0 vs. Ha:(μeμg) 0H _ { a } : \left( \mu _ { e } - \mu _ { g } \right) \neq 0
D) H0:(μeμg) =0H _ { 0 } : \left( \mu _ { e } - \mu _ { g } \right) = 0 vs. Ha:(μeμg) >0H _ { a } : \left( \mu _ { e } - \mu _ { g } \right) > 0

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