Math  /  Data & Statistics

QuestionThe records of a casualty insurance company show that, in the past, its clients have had a mean of 1.7 auto accidents per day with a variance of 0.0025 . The actuaries of the company claim that the variance of the number of accidents per day is no longer equal to 0.0025 . Suppose that we want to carry out a hypothesis.test to see if there is support for the actuaries' claim. State the null hypothesis H0H_{0} and the alternative hypothesis H1H_{1} that we would use for this test. H0:H1:\begin{array}{l} H_{0}: \square \\ H_{1}: \square \end{array}

Studdy Solution
Define the alternative hypothesis H1H_1.
The alternative hypothesis H1H_1 states that the variance of the number of auto accidents per day is not equal to the original variance.
H1:σ20.0025 H_1: \sigma^2 \neq 0.0025
The hypotheses for the test are:
H0:σ2=0.0025H1:σ20.0025\begin{array}{l} H_0: \sigma^2 = 0.0025 \\ H_1: \sigma^2 \neq 0.0025 \end{array}

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