Question

A report states that the mean yearly salary offer for students graduating with accounting degrees in 2012 was $49,007. Suppose that a random sample of 60 accounting graduates at a large university who received job offers
resulted in a mean offer of $49,800 and a standard deviation of $3,100. What is the observed significance level?


The correct answer is 0.261, but I'm not sure how to get there.

Answer 1

Answer:

The significance level of difference in fhe two means is indeed 0.26.

Step-by-step explanation:

To obtain the significance level, just standardize the mean in 2012 with the new mean and standard deviation.

The standardized score (z) is the value (x) minus the mean (xbar) then divided by the standard deviation (σ)

z = (x - xbar)/σ = (49007 - 49800)/3100 = - 0.26

Therefore, the significance level of difference is indeed 0.26.