HypothesisTestingReview

# HypothesisTestingReview - HypothesisTesting There is widely...

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Hypothesis Testing There is widely held belief that men are at a greater advantage in terms of salary than women in technological fields. The average of engineering salaries of men is known with men making, on average, an introductory salary of \$50,000 with a population standard deviation of \$5,000. Then a sample of 50 female engineers making and introductory salary, on average, of \$45,000 was taken. Using the Z test at the 99% significance level, test the null hypothesis that there is no difference between the engineering salaries of both men and woman. Null Hypothesis: H o : μ= x Male engineering wages are equal to female engineering wages. Alternative/Research Hypothesis: H a : μ x Male engineering wages are not equal to female engineering wages Since our hypothesis is non-directional, we may reject the null hypothesis if Z obtained is greater than or less than Z critical. x –μ/ó/ n μ=\$50,000; x = \$45,000; ó=\$5,000; n=50 Standard error: 5000/ 50 = 707 Z obtained = –5000/707= |–7.07 | Z critical = 2.58 Z obtained > than z critical .

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