The average starting salary of students who graduated from colleges of Business in 2009 was $48,400. A sample of 100 graduates of 2010 showed an average starting salary of $50,000. Assume the standard deviation of the population is known to be $8000. We want to determine whether or not there has been a significant increase in the starting salaries.   Step 1. Statement of the hypothesis                                       Step 2. Standardised test statistic formula                                          Step 3. State the level of significance                                                Step 4. Decision Rule (Draw a bell to show rejection zone)              Step 5. Calculation of the statistic                                                      Step 6. Conclusion

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