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In: Statistics and Probability

Skitzy Schizophrenic at the American Medical Association wrote a report recently that stated the average annual...

Skitzy Schizophrenic at the American Medical Association wrote a report recently that stated the average annual salary of psychiatrists is $185,000  with a population standard deviation of $27,000 (σ= 27000).  A group of hospital administrators in the Northeast randomly sampled 64 psychiatrists (n = 64) to test to see if psychiatrists in their region have a different average.  Their sample was found to have an average annual salary of $194,630 .   

  1. Conduct a hypothesis test to determine if the average salary at this Northeast hospital is significantly different from the national average reported by Skitzy. Test using the traditional method using α = 0.01.
  1. What is the p-value for the hypothesis test found in part 2a?

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