A question need to be solved about null hypothesis and alternative hypothesis?

I have encountered this question below:

The annual profit of your company was USD10000, the average for the sector was USD12000, you have to know if an evidence show that your company is not as profitable as average.

Question: state H0 and H1 for the test to check this?

My answer is:

H0 My company is not as profitable as average

H1 My company is as profitable as average

I feel a little confused if H0 should be as profitable or not, I need your help for this question and appreciate your comments about this question.

Many thanks!

Sonny

Re: A question need to be solved about null hypothesis and alternative hypothesis?

10000 < 12000.

What/why are you asking?

Re: A question need to be solved about null hypothesis and alternative hypothesis?

Quote:

Originally Posted by

**Sonny** I have encountered this question below:

The annual profit of your company was USD10000, the average for the sector was USD12000, you have to know if an evidence show that your company is not as profitable as average.

Question: state H0 and H1 for the test to check this?

My answer is:

H0 My company is not as profitable as average

H1 My company is as profitable as average

I feel a little confused if H0 should be as profitable or not, I need your help for this question and appreciate your comments about this question.

Many thanks!

Sonny

H0 and H1 should be the other way around. H0 is always the "status quo".

Are you expected to go further? Have you any info about the variance?