I have done the first part of the question already I just need help on the second part.
You read in a U.S Census Bureau that a 99% confidence interval for the mean income in 2005 of American households headed by a college educated person at least 25 years old was 100,272±1651. Based on this interval, can you reject the null hypothesis that the mean income in this group is $95,000? What is the alternate hypothesis of the test? What is its significance level?
I answered that you can reject the null hypothesis at the 0.01 level as confidence interval is between 98621 and 101923, and 95,000 is not in that in that range.
I am confused about the alternate hypothesis is it Ha>95,000 or is it Ha does not equal 95,000. Also How do I get the signicance level of the null hypothesis?
Thank you very much everyone.