Question

In: Statistics and Probability

Suppose you want to test if the mean salary of CC students who have taken statistics...

Suppose you want to test if the mean salary of CC students who have taken statistics differs from the mean salary of CC students who have not taken statistics. The mean salary of CC students who have not taken statistics is known to be 52 thousand dollars. You take a sample of 100 CC students who have taken statistics and find that they make on average 55 thousand dollars. Assume that the population standard deviation is 10 thousand dollars. What can you conclude at the 5% significance level?

Solutions

Expert Solution

This is the two tailed test .

The null and alternative hypothesis is

H0 : = 52

Ha : 52

Test statistic = z

= ( - ) /    / n

= (55 - 52) / 10 / 100

Test statistic = 3

P-value = 0.0026

P-value < = 0.05

Reject the null hypothesis .


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