Question

# According to the U.S. Bureau of Labor Statistics, the average weekly earnings of a production worker...

According to the U.S. Bureau of Labor Statistics, the average weekly earnings of a production worker in July 2011 were \$657.49. Suppose a labor researcher wants to test to determine whether this figure is still accurate today. The researcher randomly selects 55 production workers from across the United States and obtains a representative earnings statement for one week from each. The resulting sample average is \$672.84. Assuming a population standard deviation of \$63.90 and a 5% level of significance, determine whether the mean weekly earnings of a production worker have changed.

Appendix A Statistical Tables

 The value of the test statistic is ______________________ and we _______________________ (reject the null hypothesis or fail to reject the null hypothesis.)

Null hypothesis

Alternative hypothesis

We have given,
Population mean for given example =\$657.49
Sample mean=\$672.84
Population standard deviation =   \$63.9
Sample size for given example =   55
Level of significance =0.05
Z test statistic formula

=1.78

P value =0.0751.....................by using Z table or Excel command =2*(1-NORMSDIST(1.78))

P value > 0.05

 The value of the test statistic is 1.78 and we fail to reject the null hypothesis.

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