Question

An employment information service claims the mean annual salary for full-time male workers over age 25 and without a high school diploma is $26,000. The annual salaries for a random sample of 10 full-time male workers without a high school diploma are shown below.

Salaries
25,685	24,097	20,267	21,874	24,689
25,818	23,314	28,455	30,282	29,041

Instructions: Round all your math steps to two decimal places.

a. Compute the value of the test statistic. (Round to two decimal places) Answer

b. At α=0.05, test the claim that the mean salary is equal to $26,000. What is your conclusion?

Answer 1

	Values ( X )
	25685	110755.84
	24097	1575527.04
	20267	25859259.04
	21874	12097875.24
	24689	439834.24
	25818	216969.64
	23314	4154259.24
	28455	9627367.84
	30282	24302928.04
	29041	13607245.44
Total	253522	91992021.6

Mean

Standard deviation

To Test -

H0 :-  

H1 :-  

Test Statistic :-


t = -0.6407   - 0.64

part b)
Test Criteria :-
Reject null hypothesis if


Result :- Fail to reject null hypothesis

Decision based on P value
P - value = P ( t > 0.6407 ) = 0.5377
Reject null hypothesis if P value < level of significance
P - value = 0.5377 > 0.05 ,hence we fail to reject null hypothesis
Conclusion :- Fail to reject null hypothesis

There is sufficient evidence to support the claim that the mean salary is equal to $26,000.