The Bureau of Labor Statistics reported that the average yearly income of doctors in the year 2017 was $115,000. A sample of 300 dentists, which was taken in 2018, showed an average yearly income of $120,000. Assume the standard deviation of the population of dentists’ incomes in 2017 is $30,000. We want to test and determine if there has been a significant increase in the average yearly income of dentists. Compute the test statistic. Compute the critical value. Determine the p-value; and at a 5% level of significance, test the hypotheses. *Because we know the sample size I will use a Z-test statistic. However, I need help with computing the z-test statistic in excel. Particularly, I'm a bit confused about how to set up the formula Z Test = (x̄ – μ) / (σ / √n) and computing the critical value. Thank you
The Bureau of Labor Statistics reported that the average yearly income of doctors in the year 2017 was $115,000. A sample of 300 dentists, which was taken in 2018, showed an average yearly income of $120,000. Assume the standard deviation of the population of dentists’ incomes in 2017 is $30,000. We want to test and determine if there has been a significant increase in the average yearly income of dentists.
- Compute the test statistic.
- Compute the critical value.
- Determine the p-value; and at a 5% level of significance, test the hypotheses.
*Because we know the
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