BA 6933 Statistics and Quantitative Methods
Chapter 9 Problem 29
a
Since the school administrator wants to see if the population mean administrator salary
a two tailed test with
H_a: μ ≠ 6
is definity appropriate.
The null and alternative hypotheses for the administrator salary hypothesis test are as follo
:
m
=
90,000
:
m
≠
90,000
b
Formula for test statistic are as follows:
The value of test statistics is as follows:
=
85,272 - 90,000 / 11,039.23 / √25
=
-2.141
The degree of freedom on the t-test statistic
are
n-1
=
25-1
From t distribution table the absolute value of test statistic |t| = 2.141 is between:
t025
=
2.064
t01
=
2.492
From this, the p-value bounds for t=-2.141 in two-tailed test with 24 degrees of freedom are as f
.02<p-value<.05
Also we can find exact p-value using excel sheet formula
The excel sheet formula
p-value
=
t.dist.2t(|t|.n-1)
Calculated value ----------->
0.0426368
Therefore, p-value
=
0.0426
c
For a hypothesis test, the rejection rule using the p-value approach is as follows:

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