In the midst of labor-management negotiations, the president of a company argues that the company's blue-collar workers, who are paid an average of $30,000 per year, are well paid because the mean annual income of all blue-collar workers in the country is less than $30,000. That figure is disputed by the union, which does not believe that the mean blue-collar income is less than $30,000. To test the company president's belief, an arbitrator draws a random sample of 350 blue- collar workers from across the country and asks each to report his or her annual income. If the arbitrator assumes that the blue-collar incomes are normally distributed with a standard deviation of $8,000, can it be inferred at the 5% significance level that the company president is correct?
In the midst of labor-management negotiations, the president of a company argues that the company's blue-collar workers, who are paid an average of $30,000 per year, are well paid because the mean annual income of all blue-collar workers in the country is less than $30,000. That figure is disputed by the union, which does not believe that the mean blue-collar income is less than $30,000. To test the company president's belief, an arbitrator draws a random sample of 350 blue- collar workers from across the country and asks each to report his or her annual income. If the arbitrator assumes that the blue-collar incomes are normally distributed with a standard deviation of $8,000, can it be inferred at the 5% significance level that the company president is correct?
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter10: Statistics
Section10.3: Measures Of Spread
Problem 1GP
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Transcribed Image Text:In the midst of labor-management negotiations, the president of a company argues that
the company's blue-collar workers, who are paid an average of $30,000 per year, are well paid
because the mean annual income of all blue-collar workers in the country is less than $30,000. That
figure is disputed by the union, which does not believe that the mean blue-collar income is less than
$30,000. To test the company president's belief, an arbitrator draws a random sample of 350 blue-
collar workers from across the country and asks each to report his or her annual income. If the
arbitrator assumes that the blue-collar incomes are normally distributed with a standard deviation
of $8,000, can it be inferred at the 5% significance level that the company president is correct?
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