Elementary Statistics: A Step-by-Step Approach with Formula Card 9th Edition

Published by McGraw-Hill Education
ISBN 10: 0078136334
ISBN 13: 978-0-07813-633-7

Chapter 8 - Hypothesis Testing - 8-2 z Test for a Mean - Exercises 8-2 - Page 436: 11

Answer

Step 1 : $H_0$: µ $\leq$ 8121 dollars , $H_1$: µ > 8121 dollars Step 2: Since α = 1-0.01=0.99, and the test is a right-tailed test, the critical value is 2.33. Step 3: $\bar{X}$ = 152.59 dollars, µ =150 dollars, σ =10.78 dollars, n = 38 Test value = z = $\frac{\bar{X}- µ }{σ / \sqrt n}$ = $\frac{152.59- 150}{10.78 / \sqrt 38}$ =1.48 Step 4 : Since the test value falls within the critical value, the decision is not to reject the null hypothesis. Step 5: There is enough evidence to support the claim that the state employees earn on average less than federal employees.
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