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We think that the average number of employees with a college education at banks in Texas...

We think that the average number of employees with a college education at banks in Texas is greater than 80. In the past, that number was not greater than 80. We take a random sample of 100 banks and find that the sample mean was 85 and the sample standard deviation was 20. Using an alpha value of 0.05,

a. what is the rejection region?

b. what is the test statistic?

c. and what is your decison?

c choices:

2.5 is in the rejection region, so reject the null hypothesis

2.5 is not in the rejection region, so accept the null hypothesis

1.645 is in the rejection region, so reject the null hypothesis

-1.645 is not in the rejection region, so do not reject the null hypothesis

2.0 is in the rejection rejection, so reject the null hypothesis
Math   Statistics-And-Probability   
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Homework Answers

Answer #1

Ho : = 80
Ha : > 80

a) Since population standard deviation is unknown, t test is used.
Rejection region = t tab = t (, n-1) = t (0.05, 99) = 1.6604

b) Test statistic = t cal =  
=  
= 2.5

c) Since t cal > t tab & 2.5 is in the rejection region, so we reject the null hypothesis at 5% l.o.s.

Hope this answers your query!

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