Question

In: Statistics and Probability

An employment information service claims the mean annual salary for full-time male workers over age 25...

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?

Solutions

Expert Solution

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.

orchestra answered 2 years ago
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