A financial analyst working for a financial consulting company wishes to find evidence that the average price-to-earnings ratio in the consumer industry is higher than the average price-to-earnings ratio in the banking industry. The alternative hypothesis is

A. μconsumer ≠ μbanking.
B. μconsumer = μbanking.
C. μconsumer < μbanking.
D. μconsumer > μbanking.
E. μconsumer ≤ μbanking.

For this case we want to test if the average price-to-earnings ratio in the consumer industry is higher than the average price-to-earnings ratio in the banking industry (alternative hypothesis) and the complement would be the null hypothesis:

Null Hypothesis:

Alternative hypothesis:

So the correct option would be:

D. μconsumer > μbanking.

Step-by-step explanation:

Previous concepts

A hypothesis is defined as "a speculation or theory based on insufficient evidence that lends itself to further testing and experimentation. With further testing, a hypothesis can usually be proven true or false".  

The null hypothesis is defined as "a hypothesis that says there is no statistical significance between the two variables in the hypothesis. It is the hypothesis that the researcher is trying to disprove".  

The alternative hypothesis is "just the inverse, or opposite, of the null hypothesis. It is the hypothesis that researcher is trying to prove".  

Solution to the problem

For this case we want to test if the average price-to-earnings ratio in the consumer industry is higher than the average price-to-earnings ratio in the banking industry (alternative hypothesis) and the complement would be the null hypothesis:

Null Hypothesis:

Alternative hypothesis:

So the correct option would be:

D. μconsumer > μbanking.

450 is the final answer! : )