Step 1 :The null hypothesis, denoted by H0, is usually the hypothesis that sample observations result purely from chance. In this case, the null hypothesis would be that the mean number of miles driven annually in the firm's cars is still about 14,750 miles.
Step 2 :The alternative hypothesis, denoted by H1, is the hypothesis that sample observations are influenced by some non-random cause (for example, our cars are being driven less). In this case, the alternative hypothesis would be that the mean number of miles driven annually in the firm's cars has decreased from 14,750 miles.
Step 3 :Final Answer: \n\[\begin{array}{l}H_{0}: \mu = 14750 \H_{1}: \mu < 14750\end{array}\]