Answer:
There is not enough evidence to suggest that mean starting salary of a graduate with a bachelor in economics is different from $48,500.
Step-by-step explanation:
In this case we need to test whether the mean starting salary of a graduate with a bachelor in economics is $48,500.
The information provided are:
The hypothesis for the test can be defined as follows:
<em>H</em>₀: The mean starting salary of a graduate with a bachelor in economics is $48,500, i.e. <em>μ</em> = 48500.
<em>Hₐ</em>: The mean starting salary of a graduate with a bachelor in economics is different from $48,500, i.e. <em>μ</em> ≠ 48500.
As the population standard deviation is not known we will use a t-test for single mean.
Compute the test statistic value as follows:
Thus, the test statistic value is -2.43.
Compute the p-value of the test as follows:
*Use a t-table.
Thus, the p-value of the test is 0.0188.
Decision rule:
If the p-value of the test is less than the significance level then the null hypothesis will be rejected and vice-versa.
p-value = 0.0188 > α = 0.01
The null hypothesis will not be rejected at 1% level of significance.
Thus, concluding that there is not enough evidence to suggest that mean starting salary of a graduate with a bachelor in economics is different from $48,500.