Question

High school graduates:

$38,171 $27,959 $41,462 $33,903 $28,675 $29,031 $21,628 $34,531 $30,942 $21,660

$39,875 $16,947 $25,275 $31,258 $35,300 $34,165 $36,935 $46,513 $39,250 $37,772

$29,151 $28,299 $36,251 $22,637 $37,613 $30,732 $32,456 $32,786 $24,864 $28,935

(Population) Standard deviation = $600

College graduates:

$50,916 $66,597 $50,914 $46,745 $54,694 $56,222 $47,292 $60,338 $51,873 $48,000

$54,217 $54,984 $55,835 $62,192 $40,729 $46,206 $53,894 $60,627 $49,685 $49,147

$37,171 $42,463 $50,817 $46,409 $37,636 $64,954 $59,216 $62,925 $45,841 $55,588

(Population) Standard deviation = $700

The head of the U.S. Department of Education wants to test whether or not high school and college graduates earn the same salaries, on average. Thus, she has set up the following hypothesis test. H0 : μ1 − μ2 = 0 Ha : μ1 − μ2 = 0

a. Estimate the difference between the two population means.

b. What is the value of the test statistic?

c. What is the p-value?

d. With α = 0.10, do you Reject H0 or Fail to reject H0?

e. With α = 0.05, do you Reject H0 or Fail to reject H0?

f. With α = 0.01, do you Reject H0 or Fail to reject H0?

Answer 1