According to the U.S. Census Bureau, the mean salary of college graduates is $52

Question

According to the U.S. Census Bureau, the mean salary of college graduates is $52,200, whereas the mean salary of those with “some college” is $36,800

A random sample of 100 college graduates provides a sample mean salary of $55,000. Assuming that the standard deviation = $3000. Perform a hypothesis test to determine whether the population mean salary of college graduates has increased, using the level of significance a = 0.10 Note: Do the following

a) State the hypotheses ( H0: (mu) = ? , Ha: (mu) … ? )

b) Find the value of Zcrit and state the rejection rule

c) Calculate Zdata

d) State the conclusion and then interpret your result

Explanation / Answer

a) null hypothesis:Ho mean<=52200

alternate hypothesis: Ha: mean >52200

Zcritical =1.2816

rejection rule z>1.2816

c) std error of mean =std deviation/(n)1/2 =300

test stat Z data=(X-mean)/std error =(55000-52200)/300 =9.3333

d)as Z data is higher then critical value; we conclude that population mean salary of college graduates has increased,

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