Question

In our industry on average a firm paid out record year end bonuses of $125,500 per employee for 2008. We would like to take a sample of employees at our firm to see whether the mean year end bonus is different from the reported mean of $125,500 for the population. We sample 40 of our employees and we had a mean of $118,000. Assume a population standard deviation of $30,000. Setup for the p-value and critical value approaches. We want to be 95% confident about our finding.
If the Answer could be broken down on how they were solved, that would be great.

1. Sample Mean =
2. Population Mean = ?
3. Population Standard Deviation = ?
4. Sample size = ?
5. Alpha Error = ?
6. Confidence Coefficient = ?
7. Calculate Test Statistic = ?
8. Rejection Region Critical Value = ?

Answer 1

Answer:

Step-by-step explanation:

Given that in our industry on average a firm paid out record year end bonuses of $125,500 per employee for 2008. We would like to take a sample of employees at our firm to see whether the mean year end bonus is different from the reported mean of $125,500 for the population.

1. Sample Mean = 118000

2. Population Mean = 125500

3. Population Standard Deviation = 30000

4. Sample size = 40

5. Alpha Error = 5%

6. Confidence Coefficient = 95%

7. Calculate Test Statistic = Mean difference /s td error = -1.581

8. Rejection Region Critical Value = If Z statistic is below -1.96 or above 1.96