Question 2

a) Define what is a null and alternative hypothesis?

b) Your manager is interested in knowing whether nor not spending more money on digital advertising will lead to increased sales. Assist your manager by identifying a null and alternative statement based on this scenario.

c) What does the level of significance tell you?

d) How does one commit a type 1 error?

e) Briefly explain the difference between a two-tailed and a one-tailed test 

f) Draw a two-tailed normal distribution curve with a significance level of 5%. On your graph identify the critical values, shade the rejection regions, and show alpha.