So the question says "A company that claims the average time a customer waits on hold is less than $5$ minutes. A sample of $35$ customers have an average wait time of $4.78$ minutes . Assume the population standard deviation for the wait time is $1.6$ minutes. Test the company's claim"
So to me the null hypothesis is the status quo therefore $H_0\lt 5$ whereas the alternative hypothesis $H_1$ should be $H_1\ge5$
However the official answer to this solution is completely opposite it's stated $H_0\ge5$ , $H_1\lt5$
What am I missing here?
In statistics, the alternative hypothesis is what we wish to show. In this case, the company wishes to show that the average time a customer waits on hold is less than $5$ minutes.
We have
$$\frac{4.78-5}{1.6/\sqrt{35}}\sim \mathsf N(0,1)$$
Since $$\Phi\left(\frac{4.78-5}{1.6/\sqrt{35}}\right)\approx\Phi(-0.813)\approx0.208$$
we fail to reject the null hypothesis at $\alpha=0.05$. We do not have significant evidence that the average time a customer waits on hold is less than $5$ minutes.