Question

The Wall Street Journal reported that recipients of a bachelor degree with major in business receive average starting salaries of $55,000 in 2017, with a standard deviation of $8,000. A sample of 100 salaries from business majors collected in 2018 shows a mean starting salary of $ $54,000. You are hired as a statistician to investigate whether there are salary differences for business majors in 2018 with respect to 2017. Allow for 1% error on a two tail test.

The critical value for this problem is ?

1.65, -2.33, -1.96 or 2.58

You calculated a standard error equal to : 800, 200, 400 Or 100 ?

The test statistic you calculated is: -1.25, -1, -2.5 Or -2

What is your decision after the test? (Accept or Reject)

The p-value is equal to : 0.1587, 0.0228, 0.1056 OR 0.0062

What is your conclusion after the test? Be specific and relate to the problem.

Answer 1