Question

the average salary for new college graduates with the job is $50,556. A particular University wants to claim his graduates earn more than average. To test this claim they randomly select 100 of their new graduates to find that their average salary is $53,200 with a standard deviation of $10,200. What conclusion should the draw?​

Answer 1

Answer:

Given:

Null hypothesis: the average salary for new college graduates with a job is $50,556.

Alternative hypothesis: the graduates from a university earn more than that average.

Using the z-test:

=> Calculate the value of test statistic:

t = (mean of sample - mean of null hypothesis)/(std/sqrt(number of sample)

 = (53200 - 50556)/(10200/sqrt(100))

 = 2.592 > 1.645

=> Reject the null hypothesis, their graduates earn more than average

Hope this helps!

:)