Wall Street securities firms paid out record year-end bonuses of $ 125,500 per employee for 2005...

Wall Street securities firms paid out record year-end bonuses of $ 125,500 per employee for 2005 (Fortune, February 6, 2006). Suppose we would like to take a sample of employees at the Jones & Ryan securities firm to see whether the mean year-end bonus is different from the reported mean of $ 125,500 for the population.

State the null and alternative hypotheses you would use to test whether the year-end bonuses paid by Jones & Ryan were different from the population mean.

H₀: - Select your answer -greater than 125,500greater than or equal to 125,500equal to 125,500less than or equal to 125,500less than 125,500not equal to 125,500
H_a: - Select your answer -greater than 125,500greater than or equal to 125,500equal to 125,500less than or equal to 125,500less than 125,500not equal to 125,500
Suppose a sample of 40 Jones & Ryan employees showed a sample mean year-end bonus of $ 118,000 . Assume a population standard deviation of = $ 29,000 and compute the p-value (to 4 decimals).
With = .05 as the level of significance, what is your conclusion?
- Select your answer -Conclude that the year-end bonuses paid by Jones & Ryan were different from the population meanDo not conclude that the year-end bonuses paid by Jones & Ryan were different from the population mean

Answer the next three questions using the critical value approach.
Using = .05, what is the critical value for the test statistic (to 2 decimals)?
+/-
Calculate the test statistic (to 2 decimals).
Using = .05, can you conclude that the year-end bonuses paid by Jones & Ryan were different from the population mean?

Solutions

Expert Solution

a)
hypothesis in 1)
b)
p-value = 0.1019
c)
Do not conclude that the year-end bonuses paid by Jones & Ryan were different from the population mean

d)
critical value = 1.96

e)
TS = -1.636

f)
No

orchestra answered 1 year ago

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