The Department of Labor would like to test the hypothesis that the average hourly wage for recent college graduates is less than $20. A random sample of 24 recent college graduates averaged $19.30 per hour with a standard deviation of $3.20 per hour. The Department of Labor would like to set ? = 0.10. Use the critical value approach to test this hypothesis.
1 answer:
Answer:
The claim is false that t the average hourly wage for recent college graduates is less than $20.
Step-by-step explanation:
Claim : The Department of Labor would like to test the hypothesis that the average hourly wage for recent college graduates is less than $20.
n = 24
Since n < 30
So, we will use t test
x = 19.30
s = 3.20
Formula :
Substitute the values :
Degree of freedom = n-1 = 24-1 = 23
α=0.10
So, using t table
t critical > t calculated
So we accept the null hypothesis
So, The claim is false that t the average hourly wage for recent college graduates is less than $20.
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