Question

Steve is a new sales manager who is trying to improve the retention of his employees by making sure they are paid in line with the industry standard. The average base salary for salespeople in Steve's industry is $48,000 per year. Steve randomly selects 20 salespeople at his company and determines their base salaries. Steve conducts a one-mean hypothesis at the 5% significance level, to test whether the mean salary is less than $48,000. For this test: H0:μ=$48,000; Ha:μ<$48,000, which is a left-tailed test. Use Excel to test whether the mean salary is less than $48,000. Identify the test statistic, t, rounding to two decimal places, and p-value, rounding to three decimal places from the Excel output.

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Provide your answer below: test statistic= p-value=

Answer 1

Formula used are mentioned in the sheet. Also, level of significance, is assumed to be 0.05