1.Give an explanation of the following terms;

a. Hypothesis

b. Error / error type I

c. P-value

2. The first thing to do in hypothesis testing is to make / state the problem in the form of a hypothesis. Try to write a hypothesis from the following statements:

a. The mean hourly wage for employees in goods-producing industries is currently $24.57 (Bureau of Labor Statistics website, April, 12, 2012). Suppose we take a sample of employees from the manufacturing industry to see if the mean hourly wage differs from the reported mean of $24.57 for the goods-producing industries.

b. The manager of the Danvers-Hilton Resort Hotel stated that the mean guest bill for a weekend is $600 or less. A member of the hotel's accounting staff noticed that the total charges for guest bills have been increasing in recent months. The accountant will use a sample of future weekend guest bills to test the manager's claim.