Question

Asked Mar 19, 2019

Step 1

**State the appropriate hypothesis:**

Denote the population mean as μ*.*

The investigator is interested to test whether the population mean salary of an employee in the city of Yarmouth is greater than $55,000 or not.

*The hypotheses are given below:*

*Null hypothesis:*

*H*_{0} : μ ≤ $55,000

That is, the population mean salary of an employee in the city of Yarmouth is less than or equal to $55,000.

*Alternative hypothesis:*

*H*_{1} : μ > $55,000 (Right tail test).

That is, the population mean salary of an employee in the city of Yarmouth is greater than $55,000.

Step 2

**Obtain the test statistic value.**

Here, the population standard deviation is not known.

Under null hypothesis the population mean salary of an employee in the city of Yarmouth is μ = $55,000.

The sample mean salary of an employee in the city of Yarmouth is *x*-bar = $56,500, the sample size is *n *= 61 and the sample standard deviation in the salary of an employee in the city of Yarmouth is *s *= $3,750.

The test statistic value is obtained as **3.12 **from the calculation given below:

Step 3

**Obtain the P–value:**

Here, the test statistic value is 3.12.

The degree of freedom is *n *– 1 = 61 – 1 = 60.

From the given Right-Tailed T-Table the *P*–value is obtained as 0.001 by using the procedure given below:

- The objective is to find the value of
*P*(*z*> 3.12). - The given tabulated values are corresponding to the right tailed values.
- Locate the value
**60**in the degrees of freedom. - Move towards the right along the ...

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