Federal administration stated that unemployment level in US is 8.6% (population proportion = 0.086). A hypothesis test is to be performed to decide whether unemployment level in NY State differs from national level. a) formulate the null hypothesis b) formulate the alternative hypothesis c) classify the hypothesis test as two-tailed, left-tailed or right-tailed Solution a) H0: unemployed level=8.6% b) H1: unemployed level not equal to 8.6% C) If the hypothesis is assumed as above it is 2-tailed test In the case of 1-tailed test alternate hypothesis as follows H1: unemployed level < 8.6% or H1: unemployed level > 8.6%.

1. Federal administration stated that unemployment level in US is 8.6% (population proportion =
0.086). A hypothesis test is to be performed to decide whether unemployment level in NY State
differs from national level. a) formulate the null hypothesis b) formulate the alternative
hypothesis c) classify the hypothesis test as two-tailed, left-tailed or right-tailed
Solution
a) H0: unemployed level=8.6%
b) H1: unemployed level not equal to 8.6%
C)
If the hypothesis is assumed as above it is 2-tailed test
In the case of 1-tailed test alternate hypothesis as follows
H1: unemployed level < 8.6%
or
H1: unemployed level > 8.6%