1. Nationwide, the average salaries of actuaries who achieve the rank of Fellow
ID: 3217769 • Letter: 1
Question
1. Nationwide, the average salaries of actuaries who achieve the rank of Fellow is $150,000. An insurance executive wants to see how this compares with Fellows within his company. He checks the salaries of eight Fellows and finds the average salary to be $155,500 with a standard deviation of $15,000. Can he conclude that Fellows in his company make more than the national average, using a significance of 0.05?
What is the test statistic value for step 3?
Select one:
a. 1.0371
b. 1.895
c. 155,471.7157
d. 2.9333
2. Nationwide, the average salaries of actuaries who achieve the rank of Fellow is $150,000. An insurance executive wants to see how this compares with Fellows within his company. He checks the salaries of eight Fellows and finds the average salary to be $155,500 with a standard deviation of $15,000. Can he conclude that Fellows in his company make more than the national average, using a significance of 0.05?
Do we reject or fail to reject H0 and what does that indicate (step 4 and 5)?
Select one:
a. Reject H0. There is a significant difference between the means.
b. Fail to reject H0. There is not a significant difference between the means.
c. Reject H0. The means are not significantly different.
d. Fail to reject H0. The means are significantly different.
Explanation / Answer
Test stastic = Mean(sample) - mean(population) / (sigma/sqrt(n)) =
(155500-150000) / [15000/sqrt(8)] = 1.037
We find p-value for df=n-1 = 7 and t-value to 1.037
The P-Value is .334225. from table
The result is not significant at p < .05. So, we fail to reject the null hypotheses. There is not a significant difference.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.