What should Andy’s null hypothesis be?

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?
A . People who receive electronic coupons spend more on average.
B . People who receive electronic coupons spend less on average.
C . People who receive electronic coupons do not spend more on average.
D . People who do not receive electronic coupons spend more on average.

View Answer

Answer: C

Explanation:

The null hypothesis presumes the status quo. Andy is testing whether or not people who receive an electronic coupon spend more on average, so, the null hypothesis states that people who receive the coupon do spend more on average.