Question

Data provided by the National Association of College Employers indicated that the average starting salary for graduates with a Bachelors Degree in Accounting was $37,000 in 2008. In June 2010 a sample of 48 graduating accounting majors provided a sample average starting salary of $38,100, with a sample standard deviation of $5200. Conduct a hypothesis test to determine if it can be assumed that accounting graduates in 2010 had higher average salaries than graduates in 2008, using α = .05.

Answer 1

Solution:

Given that,

=$37,000

= $38,100

s = $5200.

n =48

The test statisc t is,

t = ( -  ) /  (s /n)

t =( 38,000 - 37,000) / (5200. / 48)

t = (1000*  48 ) / 5200.

t = 1.33

Test staistic = 1.33

Using t distribution table

P value = 0.095

P value >  

0.095 > 0.05

Do not reject  the null hypothesis .