Consider the following hypothesis test:H0: μ > 20Ha: μ < 20A sample of 40 provided a sample mean of 19.5. The population standard deviation is 1.4.a. Compute the value of the test statistic (to 2 decimals).
b. What is the p-value (to 3 decimals)?c. Using α = .05, can it be concluded that the population mean is less than 20? d. Using α = .05, what is the critical value for the test statistic?e. State the rejection rule: Reject H0if z is the critical value.f. Using α = .05, can it be concluded that the population mean is less than 20?
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{Exercise 9.17 (Algorithmic)}Wall Street securities firms paid out record year-end bonuses of $ 125,500 per employee for 2005 (Fortune, February 6, 2006). Suppose we would like to take a sample of employees at the Jones & Ryan securities firm to see whether the mean year-end bonus is different from the reported mean of $125,500 for the population.a.State the null and alternative hypotheses you would use to test whether the year-end bonuses paid by Jones & Ryan were different from the population mean.
No-1.645greater than
Yes
0.012Yes-1.645less than or equal toYes

b.Suppose a sample of 40 Jones & Ryan employees showed a sample mean year-end bonus of $ 118,000 . Assume a population standard deviation of = $ 29,000 and compute the p-value (to 4 decimals).With = .05 as the level of significance, what is your conclusion?Answer the next three questions using the critical value approach.d.Using = .05, what is the critical value for the test statistic (to 2 decimals)?
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e.Calculate the test statistic (to 2 decimals).
Using = .05, can you conclude that the year-end bonuses paid by Jones & Ryan were different from the population mean?
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Solution
0.4427Do not conclude that the year-end bonuses paid by Jones & Ryan were different from the population mean
No

a.State the null and alternative hypotheses you would use to test whether the year-end bonuses paid by Jones & Ryan were different from the population mean.H0:
b.Suppose a sample of 40 Jones & Ryan employees showed a sample mean year-end bonus of $ 118,000 . Assume a population standard deviation of = $ 29,000 and compute the p-value (to 4 decimals).

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- Spring '15
- RudileeGabel
- Statistics, Decimals, Standard Deviation