A report from 2019 claims that the average salary of a retail worker is $15 per hour. You collect data from a random sample of 30 retail workers in Atlanta and calculate the average salary for workers from your sample to be $16.00 with a standard deviation of $2.80. Conduct a hypothesis test to determine if the true average hourly wage of a retail worker is different than the claim of $15.

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Palky Palky · Answer 1 · 2021-05-06T19:26:21+02:00

Answer:

Hypothesis test conclusion , average salary ≠ 15

Step-by-step explanation:

Null Hypothesis [H0] : Average Salary = 15

Alternate Hypothesis [H1] : Average Salary ≠ 15

t = (x bar - μ) ÷ (s / √[n])

Sample Mean [x bar] = 16 , Population Mean [μ] = 15 , Standard Deviation [s] = 2.80 , [Sample number] n = 30

t = (16 - 15) / (2.80 / 5.47)

t = 1 / 0.5

t = 2

As calculated value ie 2 > tabulated critical value ie 1.96 , at significance level 0.05. So, we reject the Null Hypothesis.

Hence, as per Alternate Hypothesis, average salary ≠ 15