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 | | | |
