Question

Problem 5

a) Suppose that, in a random sample of 40 accounting students who had their second co-op term in W19, the sample mean and hourly wage and standard deviation were $20.10 and $3.15, respectively. Calculate a 95% confidence interval for the mean hourly wage of all accounting students with a second co-op term in W16. Interpret your interval.

b) Suppose that based on historic data accounting students on their first co-op term typically earn an average of $17.84 per hour. Does the data collected in part a) suggest that accounting students in their second co-op earn on average more than those on their first co-op? Perform a hypothesis test at a 10% level of significance to test this. Clearly state your conclusion.

Answer 1