Answer the following questions in the space provided in your own words. 1. A Bureau of...

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Statistics

Answer the following questions in the space provided in your ownwords. 1. A Bureau of Labor Statistics (BLS) economist conducts astatistical study to test his hunch that in households with aminimum-wage worker, mean household debt changes following a hikein the minimum wage. Suppose the mean household debt stays the samefollowing a minimum-wage hike. However, when the economist collectsa random sample, the sample mean difference is actually greaterthan zero.
a. Does this mean the economist made a mistake in his research?Explain why/why not.
b. Suppose the economist collects a random sample and decides toconduct a hypothesis test. Formulate the null and alternativehypothesis: c
. For each statement in the following table, place in X in thecorrect box to indicate whether the statement is the nullhypothesis, the alternative hypothesis, or neither (Hint: this is anon-directional hypothesis test)
Null
Hypothesis
Alternate
Hypothesis
Neither
In households with a minimum-wage worker, mean household debtchanges following a hike in the minimum wage
In households with a minimum-wage worker, mean household debtstays the same following a hike in the minimum wage
In households with a minimum-wage worker, mean household debtincreases following a hike in the minimum wage
In households with a minimum-wage worker, mean household debtdecreases following a hike in the minimum wage

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Answer If there is a hike in the wage then household debts in the households with a minimum wage worker may increase or decrease or remain same With the hike of minimum wage not all households with a minimum wage worker will tend to spend more or spend less In some households household debt may increase due to increase in spending which is more than income in some other households household debt may decrease due to less See Answer

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	Null Hypothesis	Alternate Hypothesis	Neither
In households with a minimum-wage worker, mean household debtchanges following a hike in the minimum wage
In households with a minimum-wage worker, mean household debtstays the same following a hike in the minimum wage
In households with a minimum-wage worker, mean household debtincreases following a hike in the minimum wage
In households with a minimum-wage worker, mean household debtdecreases following a hike in the minimum wage