Question

Last year the average starting weekly salary of UCLA graduates was $1,000 with a standard deviation of $200. a random sample size of 26 was used to calculate the sample mean of $1,050. Use a 5% significance level to test the hypothesis that the starting salaries have significantly risen this year. check your answer using the p-value test?

Answer 1

1. state the null hypothesis and alternative hypothesis

2. The level of significance .

3. As population standard deviation is known, z test is used.

sample size n=26.

sample mean .

Population standard deviation .

Test statistic

4. P-value = P(z>1.2747) =0.1012.

P-value>0.05, fail to reject null hypothesis.

5. Conclusion:

There is insufficient evidence to support the claim that the starting salaries have significantly risen this year.

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